RoodMicrotec N.V. 2011 - cdn.beleggen.nl · stage in the chip design process. Smart Factory Smart...

RoodMicrotec N.V.‘Rembrandt’, Dokter van Deenweg 58NL-8025 BC Zwolle

Correspondence address:P.O. Box 1042NL-8001 BA Zwolle

Telephone: +31 (0)38 4215216Fax: +31 (0)38 4216410

E-mail: [email protected]: www.roodmicrotec.com

Chamber of Commerce number 33251008 Annual Report • RoodMicrotec N.V.2011

Annual Report 2011

RoodMicrotec N.V.

2 RoodMicrotec

2011 HighlightsCommercial/operational- StrengtheningofourpositioninSupplyChain Management.- Concentrationoftestactivitiesandstrengtheningof theorganisationinNördlingen.- ConcentrationofFailure&TechnologyAnalysisand strengtheningoftheorganisationinStuttgart.- Strengtheningoftheinternalsalesorganisation.- RestructuringofQualification&Reliabilityinthe secondhalfof2011andstrengtheningofthe organisation.

Financials- Salesgrowthin2011of1%toEUR15.7million.- EBITDA:EUR1.9million.- EBIT:unchangedatEUR709,000.- EBT:EUR408,000;amarkedincreasecompared tothepast.- Netincome:EUR588,000.- SignificantexceptionalexpenditureofEUR550,000 mainlyduetorestructuringcosts.

- Solvencyimprovedto47%(2010:41%).- Gearingratioimprovedto30%(2010:37%).

Profile RoodMicrotecisasupplychainmanagementorganisa-tionspecialisinginpartialprocessesessentialtoreliableend-products,liketestengineering,test,qualification&reliabilityandfailure&technologyanalysis.Manyofourcustomersholdvaluableintellectualproperty,whichre-quiresoptimumprotection.Duetoourpositioningwearewellplacedtoprotectourcustomers’know-how.Wearealsoabletoselectthebest(ASIC)engineers,WaferFABsandICassemblyhouses.

ThefollowingcoreservicescharacteriseRoodMicrotec:• managingtheentireprocessfromdesignideaallthe waytosupplytotheend-user,includingpurchasing, logistics,warehousing/logistics;• securingtestabilityandmanufacturabilityatanearly stageinthechipdesignprocess.

Smart Factory

Smart Building

Smart Home

Smart Grid

GreenSmart FactorySmart Factory

Smart BuildingSmart Building

Smart HomeSmart Home

Smart GridSmart Grid

GreenGreen

Technology Is The Key Market Enabler

New Chips… New IP… New Solutions… Everywhere

“Developed In Europe… Needed Worldwide… Made Elsewhere”

Source:IFS2012FutureHorizons

Dieter Schreiber(Sales & Marketing Manager)

Annual Report 2011 3

Supply chain

• Testingsemiconductors(microchips),whichrepresents themajorityofsales,optoelectronics (imagesensors,OASIC,LEDs)andprintedcircuitboards;• end-of-linemanufactureandservice;• developingtestsoftwareforsemiconductors;• qualifyingsemiconductors,printedboardsandprinted boardsassemblies;• qualifyingproductionprocessesaccordingtointer- connectiontechnologiesandESDsensitivity;

Design idea

Customer

Design/Product-/TestEngineering

Partner RoodMicrotec/RoodMicrotec

Wafer Fab

PartnerRoodMicrotec

Wafer Test

RoodMicrotec

IC Assembly

PartnerRoodMicrotec

Backend Test

RoodMicrotec

Supply toend user

RoodMicrotec

Realise your ideaOffering customer-oriented solutions

RoodMicrotec’sstrategyisaimedatpowerfulsolutions,i.e.customersolutionsaimedatservingthemarketoptimallyandprovidingmaximumprotectionofproducts.ThebackgroundforthisstrategyisthefactthatproductsdevelopedintheWestareincreasinglybeingmanufacturedinlow-wagecountries.Theseproductsareoftensubjecttointellectualpropertyrightsandmustbeprotectedagainstinfringement.Inaddition,fablesscompanies(FCs)findithardtofindtherightpartnerswhocanguaranteethequalityoftheend-products.ThisiswhyourstrategyisaimedataidingthesuccessfulmarketingofdesignsbyFCsandOEMsby(test)engineeringtheseproducts,havingthemmanufactured,andperformtesting,qualification,failureanalysisanddistribution.

Know-how

Ourproductsaremainlyusedinhigh-techenvironments:inaeronauticalandaerospaceapplicationsincludingsatellitecon-nectionsandcommunicationwithsatellites,andinhealthcare,forexampleinpacemakers,whichmustbereliableunderva-riousconditionsliketemperature-afterall,youcan’thaveapacemakerfailwhenthewearerjumpsintoapool.Butalsointhecarindustry,wheremicrochipsareusedintyrepressuresensors,steeringsystems,brakingsystems,ABS,airbags,etc.Alltheseapplicationsrequirethehighestpossibledegreeofreliabilityincountlessdifferentconditions.Achievingthisrequiresevermoreknow-howonallfrontsaswellasknowledgeofallthespecificregulatoryrequirementsfortheseproducts.Withtheknow-howofitsengineersandconsultants,RoodMicrotecisideallypositionedtobridgethegapbetweentheidea(thedesigner)andtheend-userbyperformingtheintermediarysteps.

• analysingfailuresatwafer,packageandboardlevel;• reliability,environmentalinvestigationsofsemi- conductors,(assembled)printedcircuitboards(PCBs);• projectmanagementandconsulting.

Thiscompleteservicepackagewithhighlyexperiencedengineersisuniqueinthemarket.

4 RoodMicrotec

Organisation

Inthecontextofitsstrategytooffercustomerstotakecareofallthestepstobringanideatomarket,RoodMi-crotecisincreasinglyfocusingonconsultancy,producten-gineeringandKeyAccountProjectManagement(KAPM).RoodMicrotechasbothhighlyexperiencedandyoungambitiousengineerswhoareabletoworkinalldiscipli-nesinourorganisation.Ourservicescomplywiththeindustrialandqualityrequirementsofthehighreliability/space,automotive,telecommunications,medical,ITandelectronicsectors.‘CertifiedbyRoodMicrotec’concernsinteraliacertificationofproductstothestringentISO/TS16949standardcon-cerningsupplierstotheautomotiveindustryandaccor-dingtoISO14001environmentalstandard.Wealsohaveanaccreditedlaboratoryforfailure&technologyanalysisandqualification&reliabilityinvestigationstotheISO/IEC17025standard.

Collaboration with partners and customers

Keyinouroperationsisnotonlycollaborationwithcustomers,butalsowithpartners.Theentiresemicon-ductorindustryisdependentoncollaborationwithintheproductionchain.WedevelopsuchpartnershipswithbothFCsandOEMs(OriginalEquipmentManufacturers),with

Development

• Design(viapartner)• DesignSupport(DFT,DFM)• Testenvironmentengineering• Debug• Characterization,screening• Chiprepair(FIB)• Failureanalysis

Volume ramp-up

• Qualification• Lifetime/reliabilitycalculations• Yieldoptimization• Testtimereductions• Othercostreductionmeasures• Ramp-upcapacity• Establishbufferstock

Production

• Highvolumetestservices• Yieldmonitoring• Supplychainlogistics(SCM)• Systemlevelanalysis• Sophisticatedfailureanalysis• Solderabilitytests• ESD/ESDFOSevaluation

Ambitions

Wehavesetourselvesthefollowinggoals:• topositionourselvesasafirst-classone-stop-shopping supplychainserviceproviderforOEMsandFCs;• toofferthehighestqualityindividualQualification& Reliability,Failure&TechnologyAnalysis,Test Engineering,SupplyChainManagementandTest& End-of-lineservices;

RoodMicrotec - Services for the entire product lifecycle

(ASIC)designcentres,withfoundryandback-endservicepartners,knowledgeinstituteslikeuniversities,technicalcolleges,theFraunhoferInstitute,andwithtechnologypartners,suppliersandgovernmentauthorities.Thesepartnershipsbolsterourmarketingandsalesprocesses.RoodMicrotecisfullycommittedtopossessingin-housealltheknow-howrequiredtodevelopanideaallthewayfromconcepttoend-product.

Vision

Weanticipatethatanincreasingnumberofdesigncompanieswillfocusonthepartialsegmentsinwhichtheyhaveastrongposition,butalsothatmanyofthesecompaniesthatareoftenverticallyintegrated,willshednon-coreactivitiestolowertheirriskexposure.Suchac-tivitieswouldincludetesting,assemblyandengineering.ThiswillcreateamarketforspecialisedserviceprovidersfocusingonsupportingleanerOEMsandFCs.Wearesuchaspecialisedserviceprovider,andwehavetheknow-howtooffertheseOEMsandFCshigh-qualityproducts,bothindependentlyandwithintheSupplyChainManagementconcept.

Thisformsthebasisforourgrowthpotential.

• todevelopintoamajorplayerinthesemiconductor supplychainfromAsiatoEurope;• todevelopintoamajorplayerintheelectronics servicesmarketfromwafertoboard;• topositionourselvesasaleadinginnovative testhouseinEurope.


RoodMicrotec N.V. ‘Rembrandt’,DoktervanDeenweg58

NL-8025BCZwolle

Postaladdress:POBox1042

NL-8001BAZwolle

Telephone:+31(0)384215216Fax:+31(0)384216410

E-mail:[email protected]:roodmicrotec.com

ChamberofCommercenumber33251008

6 RoodMicrotec

Contents2011 highlights 2 RoodMicrotec in perspective 8

Key figures 10

Key figures charts 11

Shareholder information 12

Report of the CEO 14

Strategy, SWOT analysis and financial objectives 18

Report of the supervisory board 22

Report of the board of management 241. General 241.1 Market developments and market position 251.2 Strategic development 271.3 Sustainability 271.4 Quality management 271.5 Sales and result 281.6 Investments and financing 312. Report by business unit and department 312.1 Supply Chain Management 312.2 Engineering, Consultancy and Key Account Project Management 312.3 Business unit Test & End-of-line Services 322.4 Business unit Test Engineering 322.5 Business unit Failure & Technology Analysis 332.6 Business unit Qualification & Reliability 352.7 Research and Development 352.8 Events after balance sheet date 35

Corporate social responsibility 36

Risk management 39

Corporate governance 41

Management statement 46


Annual accounts 2011

Consolidated income statement 48Consolidated statement of comprehensive income 48Consolidated balance sheet 49Consolidated cash flow statement 50Consolidated statement of changes in equity 51Notes to the consolidated financial statements 52Company balance sheet 83Company income statement 83Notes to the company financial statements 84

Other information 88

Group structure 90

Corporate management team 91

Addresses and personal details 93

Colophon 96

Arno Rudolph (Sales & Marketing Manager)

8 RoodMicrotec

RoodMicrotec in perspective - 2011

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SALES: EUR 15.7 MILLION SalesgrowthisakeyissueforRoodMicrotecsincethetotalsemiconductormarketgrowsbyapprox.6%eachyear,unitcostskeepfallingandcomplexityisincrea-sing.Thisiswhyvolumegrowthandsalesgrowthareneededforustomaintainourintendedmarketposi-tion.Salesgrowthallowsustofinancetheexpertiseinthecompanyandyieldsessentialcostsreductions.

Objectivefor2012-2014:Inthelong-term(2013andbeyond)weaimtocontinuetogrowatthesamerateasinthepastviewyears(autonomousgrowthofbetween3%and13%)i.e.atleastatthesamerateastheglobalmarket.

EBITDA: EUR 1.9 MILLION, OR 11.8% OF SALESEBITDA:EBITbeforedepreciationandamortisationisoneofRoodMicrotec’skeyindicators.Workingaswedoinahigh-techenvironment,investmentinproductionequipmentandinnovationisvitalinordertobeabletocontinuetoprovidethedesiredtechnologicalsolutions.ThisiswhystronggrowthofEBITDAoverthenextfewyearsisoneofourkeyobjectives.

Objectivefor2012-2014:EBITDAtoriseto20%ofsales.

EBIT: EUR 0.7 MILLION, OR 4.4% OF SALESEBIT–theoperatingresultorthedifferencebetweenincomeandoperatingcosts–isthemainbenchmarkfortheprofitabilityofouroperationsandtheconti-nuityofourcompany.EBITishighlydependentontheinternalefficiencyofthecompany.RoodMicrotechasthereforesetitselftheobjectiveoffurtheroptimisingitsoperations.

Objectivefor2012-2014:EBITgrowthto10%ofsales.

NET INTEREST-BEARING DEBT: EUR 2.7 MILLION Asignificantdebtpositioncannegativelyimpactbusi-nessoperations,whichinturnmayimpedethegrowthofthecompany.Sincefinancingisregularlyrequiredfornewactivities,beingabletorespondrapidlyisimperative.Alimiteddebtpositionmakesoperatinginthemarketfareasier.

Objective:amoderatereductionofthedebtpositionwithbanksbasedonthepresentbusinessmodel.

Net

sale

sEB

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EBIT

(xE

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1,000

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NET RESULT: EUR 0.6 MILLIONThenetresultistheultimaterewardforallouractivi-ties.RoodMicrotecisawareoftheneedtoimprovepro-fitability,andalsoofthelogicthatwecanonlyachievehigherprofitabilitybyraisingproductionvolumesandsales.

Objectiveforthenextfewyears:toraisethenetresultstepbysteptoalevelbetween5%and10%ofsales.

SOLVENCY: 47% Solvency-theratioofshareholders’equitytototalassets-isakeyindicatorofthestabilityandcontinuityofacompany,andisalsoacommercialtool.Astrongsolvencyratioofbetween40%and50%helpsRoodMi-crotectoobtainloans,strengthencustomerconfidenceinthecompanyandguaranteecontinuityandsecuregrowth.

Solvencytarget:arangebetween38%and50%.

WORKING CAPITAL RATIO: 0.8 (CURRENT ASSETS/CUR-RENT LIABILITIES)Asaserviceproviderandprojectorganisation,thewor-kingcapitalisakeyelementofourbalancesheet.Wemustbeabletosecurethefundingtoinvestpromptlyinourprojects,andworkingcapitalisvitalforourcom-pany’sfuturegrowth.

Objective:tokeeptheratioofworkingcapitaltoagrossmarginofbetween1.0and1.5.

DEBT RATIO: 1.4 Thedebtratio–netinterest-bearingdebtdividedbyEBITDA–isimportantforRoodMicrotectofinancegrowthandobtainlong-termprojects.

Objective:RoodMicrotecconsidersadebtratioofbetween1.0and2.5asasolidpositionthatcanbedefendedvis-à-visthebanksyndicates.

87654321

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10 RoodMicrotec

(xEUR1,000) 2011 2010 2009 2008 2007

Result Netsales 15,717 15,563 11,922 13,057 9,528Totaloperatingincome 15,464 15,684 12,076 13,019 9,517Grossmargin 12,342 12,242 9,821 11,307 8,657EBIT(operatingresult) 709 733 -1,304 70 354EBITDA 1,865 2,361 750 1,962 1,908EBT 408 207 -1,744 -456 -18Cashflow(netresultanddepreciaton) 1,744 2,076 312 1,976 1,559Cashflowfromoperatingactivities 1,939 1,689 315 2,815 1,495Net result 588 448 -1,742 84 5 Capital, Debt & Liquidity Ratios Totalassets 12,971 13,726 13,713 16,107 11,295Groupequity 6,138 5,647 3,115 4,132 3,344Convertibledebt 0 500 750 1,667 1,000Groupequity+Convertibleloans 6,138 6,147 3,865 5,799 4,344Netdebt 2,686 3,334 4,543 5,463 4,617Capital(=netdebt+equity) 8,824 8,981 7,658 9,595 7,961Gearingratio(netdebt/capital) 30% 37% 59% 57% 58%Solvency(groupequity/totalliabilities) 47% 41% 23% 26% 30%Debtratio(netdebt/EBITDA) 1.4 1.4 6.1 2.8 2.4Networkingcapital -831 -569 -974 -2,994 -1,788Workingcapitalratio(currentassets/currentliabilities) 0.79 0.87 0.77 0.55 0.58 Assets Tangiblefixedassets 5,732 5,710 6,629 8,367 8,449Investmentsintangiblefixedassets 1,024 681 288 941 1,540Investmentsinsubsidiaries 0 0 0 2,987 0Depreciationoftangiblefixedassets 1,128 1,600 2,026 1,878 1,524 Data per share (x EUR 1) Capitalandreserves 0.17 0.16 0.09 0.14 0.13Operatingresults 0.02 0.02 -0.04 0.00 0.01Cashflow 0.05 0.05 0.01 0.09 0.06Netresult 0.02 0.01 -0.05 0.00 0.00Shareprice:yearend 0.16 0.17 0.15 0.15 0.57Shareprice:highest 0.31 0.19 0.57 0.57 0.66Shareprice:lowest 0.14 0.15 0.12 0.12 0.43 Issueofnominalshares Atyearend(x1,000) 35,769 35,769 35,196 30,489 26,741 Number of FTE’s (Permanent) Atyearend 106 120 126 148 100Average 111 124 132 125 99Sales/AverageFTE’s 142 126 90 104 96

Key Figures


Key figures charts (XEUR1,000)

Markets served 2011

Revenue by Business Unit 2011

Revenue by customer type 2011

Automotive 5,491 35% Telecommunication 385 2% Consumer 610 4% HiRel/space 1,105 7% DataProcessing 904 6% Industrial/Medical 7,222 46%

Test&EOL 7,264 46% Q&R 2,343 15% FailureAnalysis 1,667 10% TestEngineering 887 6% SCM 3,556 23%

IDM 3,516 23% Fabless,IP,Provider,SCM 5,061 32% OEM 6,169 39% Disti,CEM,OSH 971 6%

Revenue split by country 2011

Country Revenue Germany 42% USA 16% Poland 12% Austria 7% Switzerland 5% Benelux 5%

Country Revenue China,India&RestofAsia 4% UK 4% France 2% Eastern/SouthernEurope 2% Brazil 1%

Revenue by continent 2011

Continent Revenue America 2,748 18% Asia 634 4% Europe 12,335 78%

Costs by category 2011

Personnelcosts 7,215 47% Costofsales 3,375 22% Operatingcosts 2,367 15% Energy(current,gas,water) 895 6% Otherexpenses 1,457 10%

35%46%

6% 7%4%

2%

46%

15%

10%

6%

23%

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32%

39%

6%

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4%

78%

22%

15%

6%

10%

47%

42%

16%

12%

7%

5%5%

4%4% 2 2 1

12 RoodMicrotec

Shareholder informationMajor Holdings in Listed Companies Disclosure ActAsat31December2011,RoodMicrotechadnotreceivedanyreportsinthecontextoftheMajorHoldingsinListedCompaniesDisclosureAct.

Regulations to prevent insider tradingWecomplywiththeRegulationsonNotificationandRegulationofSecuritiesTransactionsoftheSecuritiesTransactions(Supervision)Act(Wte1995).Abroadcircleofemployeesandconsultantshassignedadeclarationbin-dingthemtoabidebytheRulesasreferredtoinSection46doftheWte1995.Theboardofmanagementandthesupervisoryboardalsocomplywiththe1996MajorHol-dingsinListedCompaniesDisclosureAct(WMZ1996),asamendedon1September2002.TheNetherlandsAutho-rityfortheFinancialMarkets(AFM)monitorscompliancewiththislaw.

DividendSofar,wehavenotdistributedanydividendsinceourfinancialpositiondidnotallowit.Themanagementpreferstoallowthecompanyinthenextfewyearstogrowandfurtherimproveitsfinancialhealth.Themanagementpreferstousethecompany’sownresourcestofinancegrowth,andstrivestoraisethemarketvalueofthesharethroughsuchgrowth.Inthenextfewyears,wewillseekabalancebetweentheinten-deddebtreduction,essentialinvestmentandafairreturnforinvestors.Theboardofmanagementproposesinviewofthelimitedprofitsnottodistributeanydividendfortheyear2011.Ourfirstpriorityisbalanceddebtmanagementincon-junctionwithlimitedinvestments.

Changes in the number of shares in 2011 (x EUR 1,000)Positionasat1January:35,769.Positionasat31December:35,769.Asat31December2011,thecompanyheld4,100ofitsownshares.

0

0,05

0,1

0,15

0,2

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0,35

12-31-2010

12-31-2011

2-28-2011

3-31-2011

4-30-2

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5-31-2011

6-30-2

011

7-31-2011

8-31-2011

9-30-2

011

10-31-2011

11-30-20

11

12-31-2011

1-31-2012

Share price development and stock exchange value of RoodMicrotec N.V. in 2011.

source:EuronextDatacentreRoodMicrotecNV:31December2010-23February2012


Investor relationsWearewellawareoftheimportanceofactiveandopencommunicationwithourstakeholders.Forthisreason,wehavesince2006pursuedanactiveinvestorrelationspolicythroughmeetingsandconferencecallswithpress,analystsandinvestors.Asin2011,in2012wewillraiseourprofilebyorganisingseminarshighlightingourcoreactivitiesandthecor-respondingservicesforFCsandOEMs.Theobjectiveistocommunicateourspecificknowledgeandshareitwithourcustomersandpartners.Wewillalsogivemoreat-tentiontopublicity.

• Classichog(action,over-reaction,correction,overshoot)&cobweb(1to4quartersupplyleadtimes)driven• Monthlyrunratevariesdramaticallyfromthetrendline• Impossibletobalancesupplywithdemand• Mismatchmakesit‘feel’demand&capacityisoutofcontrol

Month on month IC unit shipment trends

Communicationwiththevarioustargetgroupsisprovi-dedthroughthecompany’swebsite,www.roodmicrotec.com,andthenewsletter.

Liquidity providerInordertopromotethetradeintheRoodMicrotecN.V.shareandtooptimisethecompany’srelationshipwithitsshareholders,SNSSecuritiesN.V.inAmsterdamwasengagedasliquidityprovider.

Annual general meeting of shareholders 2011Thereportofthismeetingmaybeinspectedonthewebsite.

Financial agenda9March2012 Publicationannualreport201126April2012 Annualgeneralmeetingofshareholders15May2012 Publicationtradingupdate10July2012 Publicationsalesfiguresfirsthalf201231August2012 Publicationinterimreport201231August2012 Conferencecallforpressandanalysts15November2012 Publicationtradingupdate10January2013 Publicationsalesfiguresfullyear201226February2013 Publicationannualfigures201226February2013 Conferencecallforpressandanalysts8March2013 Publicationannualreport201225April2013 Annualgeneralmeetingofshareholders14May2013 Publicationtradingupdate9July2013 Publicationsalesfiguresfirsthalf201329August2013 Publicationinterimreport201329August2013 Conferencecallforpressandanalysts14November2013 Publicationtradingupdate

14 RoodMicrotec

Report of the CEO2011wasanunevenyearforRoodMicrotec:thefirsthalfwasstrong,whilethesecondhalfwasmarkedbymarketstagnation.

Philip Nijenhuis (CEO):‘Future Horizons CEO Malcolm Penn recently stated in his New Year’s message: ‘Last year was without doubt the most challenging year in our 22-year history.’2011 was not as bad for us as 2009, but highly complex due to the unpredictability of the market. With the unflinching dedication and strength of both our managers and employees we have succeeded in strengthening our company’s position.’

Thefirsthalfoftheyearshowedsignificantgrowthat18%,exceedingtheglobalmarket,butinthesecondhalfsalesfell,inparticularinthethirdquarterandintothefourth.Onbalance,ourgrowthwasmarginallyabovetheworldmarket.

Reinhard Pusch (CSO): ‘2011 was a challenging year; I look back on it with mixed feelings. While we struggled with difficult and unpredictable sales and indeed the bankruptcy of a customer, there was a clear increase in requests for quotes due to our much stronger market position. That created an overwhelming workload for our sales employees. I am grateful to them for their dedication over the course of last year.’

InTestthehighlightsweredecidedlyinthefirsthalf.Inthesecondhalfsalesfell,mainlyduetoadeclineintheautomotivesectorandsomeproductsreachingtheendoftheirlifespan.TherelocationoftestactivitiesfromStuttgarttoNördlingenalsodentedsalesduringtwomonthsinthesecondhalf.Theworkwascompletedattheendoftheyear,andwearenowinamuchbetterpositiongoingforward.

TestEngineeringrecoveredinthefirsthalf,butstruggledwithhardtofillvacanciesintandemwithstaffturnover.Wewillprioritisemakinggoodthisturnoverassoonaspossible,andindeedexpandourworkforce.

Norbert Wirth (CTO):’After many years with Infineon it took me some time to appreciate that a midsize company like RoodMicrotec is a very different proposition.Coming from a job which required operational and strategic management skills in equal mea-sures, my new position also involves dealing with hands-on activities on the shop floor.

At the end of the year I feel it has been a very rewarding experience. I am proud to manage a challenging team in Test Engineering, Failure & Technology Analysis and Qualification & Reliability.’

Afteradifficultfirsthalf,Qualification&Reliabilityexperiencedamarkedrecoveryinthesecondhalfof2011.Arestructuringhassignificantlyimprovedourpositioninthissector.

Failure&TechnologyAnalysisalsostruggledwithstaffshortages,inparticularinthefirsthalf,causingustofallbehindonoursalestargets.Recruitingqualifiedstaffwasourgreatestbottleneck,butithasnowlargelybeenovercome.Here,too,weaimtoexpandourteam.WecontinuetoseeFailure&TechnologyAnalysisasanareaoffuturegrowth.

Philip Nijenhuis

Reinhard Pusch

Norbert Wirth


Therehavebeenanumberofchangesinthemanagementandstaffofthecompany.Asstatedinpreviousannualreports,myemploymentcontractwiththecompanyexpiresinthemiddleof2012;itprovidesforatwo-yearextensionoptionsoastohaveenoughtimetosolidifyRoodMicrotec’smarketposition,eitherindependentlyorinpartnershipwithotherparties.

Astoourfinances,wehavecontinuedtoworkonstrengtheningourbalancesheet.Oursolvencyimprovedasourdebtpositionfellfurther.

ForsmallcompanieslikeRoodMicrotec,thecostsofcomplyingwithAFMandotherregula-toryrequirementsweighheavily.WehavefoundthatAFMtakespositionsonwhichthereisnoconsensusandwhicharestillunderdiscussionbothattheprofessionallevelandininternationalregulatorycircles.Prematurelyandunilaterallyintroducingsuchpositionscausesprotracteddiscussionsanddisproportionatecosts.RoodMicroteciseffectivelyamul-tinationalcompanyandassuchrequiresexternalexpertisewhichcomesatacorrespondingpricelevel.RoodMicrotecappealstoAFM,partlytopreventunnecessarycosts,tosubmitissuestotheIFRICinthosesituationswherecurrentpracticedeviatesfromtheinitialpositionoftheAFMorwherethispositionconflictswithauthoritativebodiessuchasaccountancyfirms.OneoftherolesoftheIFRICistoprovidetimelyguidanceonissueswhereunsatisfactoryorconflictinginterpretationshavedeveloped.Inviewofthis,wewillcontinuetoevaluatethebenefitsofthestockexchangequotation.

Outlook for 2012TheSIA(SemiconductorIndustryAssociation)forecastslimitedgrowthfortheindustryin2012at2.6%andmoderategrowthat5.8%in2013.ThisgrowthwillbeconcentratedinAsia;Europewilllagbehind.

Remy Cuny (CFO):‘2011 was my first full year with RoodMicrotec. There have certainly been challenges, but equally it has been very instructive to see how we weather the storm as a small listed com-pany. We are working hard on a number of rationalisation programmes, and fortunately we have been able to significantly improve our financial ratios compared to previous years.I am genuinely grateful to our financial employees for the commitment they have shown.’

BasedonpresentinsightsprovidedbytheSIA’sgrowthforecastsandinterviewswithourcustomersweanticipatelimitedgrowthin2012.Thepresentuncertaincircumstancespre-ventusfrommakingaccuratepredictions.

Inthelongterm(2013andbeyond)weaimtocontinuetogrowatthesamerateasinthepastfewyears(autonomousgrowthofbetween3%and13%,i.e.atleastatthesamerateastheglobalmarket).

Wewillcontinuetopursuecollaborationandpartnershipswithotherparties.

Ph.M.G. NijenhuisCEO

Remy Cuny

16 RoodMicrotec

2012 vs. 2011 World GDP Contribution Change

Canada 0.0%

US -0.5%

Others 0.7%

UK -0.1%Eurozone-0.5%

Middle East0.0%

Russia0.0%

India0.1%

China0.4% Japan

-0.1%

C&E Europe0.0%

Industrial Asia0.0%

BRICs Bouncing Back The Hardest (Again)

Source:IMF(Sep2011)&IFS2012FutureHorizons

Jerôme Sabot (Manager Internal Sales & Logistics)


World GDP Growth Trends, 2011-2012• WorldEconomyExpandedAtAnnualisedRateOf4.0%During2011 (Qu:What’sWrongWith4%GDPGrowth?WellAboveLastDecadeAverage)• Emerging&DevelopingEconomiesExperiencingStrongGrowth• AdvancedEconomiesCourtingRecession…USNowMirroringEurope• ConfidenceInAdvancedEconomies(EuropeWorst)AtAnAll-TimeLow (FromIcelandToIreland,Greece…Italy,France?EuroStillNotOutOfTheWoods)

Advanced & Emerging Economies Compared• TwoEconomiesDivergedInMid-1990s• EmergingCountries=85%WorldPopulation• StrongLocalDemand,NoLongerJustCheapExports• TheWorldHasChanged…TheChangesAreIrreversible• TheWestJustLostWW3(Economic,NotFists…DrivenBy‘Sin’)• NewEconomicWorldOrder…WithAllThePoliticalRamifications (Money=Power…GetUsedToIt,EspeciallyInTheUS&Europe)


World GDP Growth By Region

GDP Growth Comparison

WorldDev Asia

BrazilIndia

ChinaNI AsiaS’pore

TaiwanKorea

Rus/CisC&EEJapan

UKEZone

US

0 1 2 3 4 5 6 7 8 9 102011 2012 Percent Change

100

150

200

250

300

350

Rela

tive

Size

(198

4 =

100)

2012201120102009200820072006200520042003200220012000199919981997199619951994199319921991199019891988198719861985

Advanced EconomiesEmerging Economies

WorldDev Asia

BrazilIndia

ChinaNI AsiaS’pore

TaiwanKorea

Rus/CisC&EEJapan

UKEZone

US

0 1 2 3 4 5 6 7 8 9 102011 2012 Percent Change

100

150

200

250

300

350

Rela

tive

Size

(198

4 =

100)

2012201120102009200820072006200520042003200220012000199919981997199619951994199319921991199019891988198719861985

Advanced EconomiesEmerging Economies


18 RoodMicrotec

Strategy, SWOT analysis and financial objectivesGeneral

RoodMicrotecN.V.hasbeenlistedontheOfficialMarketoftheNYSEEuronextAmsterdamsince1986.Withmorethan40years’experienceasanindependentvalue-addedserviceproviderintheareaofmicroandoptoelectronics,weofferFCs,OEMsandothercompaniesaone-stopshoppingproposition.Withourpowerfulsolu-tionswehavebuiltupastrongpositioninEurope.

OurcustomersaremainlybasedinEurope.

Theactivitieshavebeengroupedintothefollowingbusi-nessunits:- SupplyChainManagement- Test&End-of-lineServices- Failure&TechnologyAnalysis- TestEngineering- Qualification&Reliability- Engineering/Consultancy/KeyAccountProject Management Atyear-end2011,thecompanyhad106employeesonstaff.Inthe2011financialyear,salesofEUR15.7milliongenera-tedanetresultofEUR0.6million.

Strategy

General strategic objectiveWeaimtopositionourselvesasafirst-classone-stop-shoppingsupplychainserviceprovidertoOEMsandFCsinEurope.WefocusonstrengtheningourcurrentspecialistareasSupplyChainManagement,TestEngineering,Failure&TechnologyAnalysis,Qualification&Reliability,Enginee-ring/Consultancy/KeyAccountProjectManagementandTest&End-of-LineServicesformicroelectronics,optoelec-tronicsandprintedcircuitboards.Additionally,weaimtoenhancepartnershipsintheareaofwaferandback-endapplications.

Market choicesAftertheslumpinthesemiconductormarketin2009,thismarketisexpectedtoseegrowthofbetween2%and6%overthenextfewyearsatanaveragelong-termannualgrowthof6%.Wewillcontinuetofocusonthefastestgro-wingsegmentswithinthesemiconductormarketinordertogrowatleastatthesamerateasthemarketasawhole.

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

5,89

0

4,86

72,26

44,178

2,39

93,7

43 4,54

37,2

40

0,99

53,63

43,06

13,318

0,34

30,813

2,05

50,82

7

3,516

6,169

5,06

1

0,97

1

2010 2011

Revenue by customer type

Note:2008includingmicrotec-figuresofthe2ndhalf


Customer typesFablesscompanies(FCs):wefocusonFCsthatconsistentlyrealisedouble-digitgrowth.Therearebetween300and400oftheseFCsinEurope,manyofwhichareactiveinthemorecomplexmixed-signalchips.OEMs:OEMsaregettingeverleaner.Toachievethatgoal,theytendtocontractoutnon-coreactivities,includingsemiconductormanufacturingfacilities.

Product choicesOurknow-howandservicesarefocusedonthefollowingproducts:

Semiconductors: Thereisawiderangeofproductsinthesemiconductormarket.Wefocusonmorecomplexproductsthatoftencombineanaloganddigitaltechnologiesandthatareusedinthespaceandaeronautical,automotive,medicalandconnectiontechnologiesaswellasinotherindustrialapplications.Theseapplicationsdemandthehighestreliability.Soweemphaticallydonotfocusontoys,cheapconsumerelectronics,etc.

Optoelectronics: Opticalelectronicsisaboomingbusinesswhichwillfindmoreandmoreapplications.Strongmarketgrowthisexpectedinthisproductsegment.Ourproductstendtobeassociatedwithindustrialapplicationsandareoftenproducedinlimitedseries,buttoveryhighqualityrequi-rements.Wehavethespecialistscapableofdoingthis.

Printed Service Boards: Developingandtestingprintedserviceboardsforhigh-qualityindustrialapplicationsisarelativelynewmarketforus.Thedistinctionbetweenprintedserviceboardsandchipsisgrowingsmallerandmorecomplexduetorapidtechnologicaldevelopments.Thequalityrequirementsareveryhigh,especiallyinaerospaceandaeronauticalappli-cations.Weexpectfurthergrowthinthismarket.

Frank Weber (Q&R Manager)Evenfacingadownturninthesecondhalfoftheyear,thebusinessunitachievedmoderatepositivegrowthduring2011comparedto2010.Wearestillhiringnewstaff,andwehavealsogainedsomemajornewcustomersfromdifferentsegments.

Service provision choices

Core activities: SupplyChainManagement,TestEngineering,Failure&TechnologyAnalysis,Qualification&ReliabilityandLogis-tics.AsproductuseinEuropewillincreaseandproductiondecreases,thevolumeofthesemiconductorsupplychainwillriseinthenextfewyears.Weintendtoexpandourroleinthissupplychain.

Back-end Test and Assembly Services: Offeringassemblycapacityiscrucialinordertoplayama-jorroleinthesupplychainmentionedearlier.Toensurethis,wehaveconcludedpartnershipsinEuropeandAsiathatenableustoofferacompetitiveintegralsolution.

Focus on consulting in the complete field of electronics: Usingourwide-rangingknow-howwecontinuetooperateinthereliability,interconnectiontechnology,ESDconsultingandassessmentmarket.Ourindustryexpertsareabletooffercustomersvaluablesolutions.

High-tech Test & Related Services: Wewillcontinuetofocusonthemixedsignalandimagesensorsproductsthatareusedextensivelyintheauto-motive,industrial,highrel/satellite,medicalandtelecomsectors.AllthesemarketsegmentsarestronginEurope.

20 RoodMicrotec

Computershavebecomeanindispensablepartofourdailylives.Weuseourlaptopsinnatureorinthecarorwetakethemwithusonholiday-thepossibilitiesareendless.Satellitetelecommunicationisthemostmatureofspaceapplications.Startingalmost50yearsagowiththelaunchofthefirsttelecommunicationssatellites(Telstarin1962andSyncomin1963),satcomhascontinuedtogroweversince.DidyouknowthatinmanycountriesaccesstotheInternetisthroughsatellitecommunication?InternetserviceprovidersoftenlinktheirserverstothecoreoftheInternetnetworkbysatellite.Withtheemergenceofverypowerfulbroadbandsatellites,users–equippedwiththeirownbroadbandinteractivesatelliteterminals–canaccesstheInternetregardlessoftheirdistancefromthenearestterrestrialnode.

TextCredits:ESA


Internal assessment of the company

SWOT analysisAsof2007wehavereportedonourinternalassessmentofthecompany.Anupdateofthosereportsissetoutbelow.

Strengths• Ouremployeesarehighlymotivatedanddedicated, conscientiousandmarket-oriented.• Ourcompany’slocationinsouthernGermany,which hasreachedthenecessarycriticalmassperservice.• Thestaff’s(intercompany)know-howandquality awarenessareexcellent,whichamplifiessynergy effects.• Positivecashflowandbalancesheetratios.

Weaknesses• Poorfinancialnetresult.• Understaffinginsomesectors.

Opportunities• Akeyopportunityistobecomeafirst-classEuropean one-stop-shoppingsupplychainproviderandapartner forleadinghigh-techFCs.• Therearecurrentlyexcitingopportunitiesinthe servicesmarkettoFCsandOEMs:manycompanies areintroducingnewproductswithgreatpotential, whichRoodMicroteccansupport.

ThreatsThevalueofthedollarisalsoproblematic,despiteourlimitedexposuretoit.Ifthedollarremainslow,thereisariskthatnewproductdevelopmentmaybemovedfromEuropetoAsia.Thatwouldspelldangerfortheentiremanufacturingindustry,whichinturnmightaffectusnegatively.Wehavenotyetobservedanysuchdevelop-ment,however.

Critical success factors

Severalcriticalsuccessfactorshavebeenidentifiedwithinthecompany,whicharemeasuredperiodically.Theyinclude:sales,salesperbusinessunit,orderintake,orderhitrate,staffmotivation,customerassessment,cashpositionandourrelationshipwithbanks.Someofthosemeasurementsarequantitative,othersarequalitative;theindicatorsareperiodicallyadjustedtochangingcircums-tances.Themanagementdrawsconclusionsbasedonthisinformation.

Financial objectives realised in 2011Theobjectivesfor2011werebasedonarelativelyoptimis-ticmarketanalysis.Althoughwedidnotreachthesalestargetswehadsetforourselves,wedidrealisepartofourfinancialobjectives.

Long-term financial objectives• Salesgrowthofbetween3%and13%perannum, basedon6%averagemarketgrowth.• Annualimprovementoftheoperatingresult.• Optimisingthedebtpositionbymeansoflong-term andshort-termloans.

22 RoodMicrotec

Report of the supervisory boardWeherebypresentthe2011annualreportaspreparedbytheboardofmanagementinaccordancewithArticle26ofthearticlesofassociationofthecompany.ThefinancialstatementswereauditedandissuedwithanunqualifiedopinionbyMazarsPaardekooperHoffmanAccountantsN.V.anddiscussedbyuswiththeboardofmanagementinthepresenceofMazars.Weproposetoourshareholderstoadoptthesefinancialstatementsinthegeneralmeetingofshareholderson26April2012andtodischargetheboardofmanagementofresponsibilityfortheirconductofbusinessin2011andthemembersofthesupervisoryboardfortheirsupervisionofthema-nagement.Inconsultationwiththemanagementweproposethatnodividendbedistributed.

RoodMicrotec in 2011Thiswasayearoftwodifferenthalves:inthefirst,busi-nessdevelopedverywell;inthesecondhalf,however,newapprehensioninthemarketscausedamarkedslowdown.TheprocessofconcentratingoperationsonRoodMicrotec’stwositesinGermanytookagreatdealofenergy,butthiswasdeemedanecessaryinvestment.WearefacedwiththeproblemofaverytightmarketforqualifiedengineersinthesouthofGermany.TheneworganisationwithanoptimisedoperationalstructureshouldbenefittheGroup’sproductivityandefficiency.

Supervisory board meeting schedule Thesupervisoryboardmetwiththeboardofmanage-mentsixtimesduring2011.Inaddition,meetingswereheldbetweenindividualsupervisoryboardmembers.ThesemeetingswereheldbothinZwolleatthecorporateheadofficeandattheproductionsitesinStuttgartandNördlingen.Giventhelocationofthesupervisoryboardmembers,somemeetingswereheldusingteleconferen-cing.Inthesemeetings,thefollowingtopicswerereviewedanddiscussedextensively:• thebusinessupdate,operationalandfinancialtargets;• developmentandchangesinthemanagementteam andappointments;• thefinancialposition;• relevantcapitalexpenditures;• thescopeandstrategyofthecompanyandtherelated riskprofile;• corporategovernanceissues;• riskmanagement;• remuneration;• audit;• publicationofpressreleases.

TheexecutionoftheoperationsrestructuringbetweenthesitesinStuttgartandNördlingenwasspecificallydiscussedonanumberofoccasionsduringtheyear.Also,thecommercialstrategyandfocuswerediscussedwithaviewtooptimisingshareholdervalue.Giventhedifficultbusinessenvironment,continuedattentionwasgiventoriskmanagement,measurestoraiseproductivity,makingtheorganisationmoreefficientandtheriskprofileofourbusinesssegmentsingeneral.Recruitingsufficienttech-nicalspecialistsintheverytightGermanlabourmarketrequirescreativesolutionsandaninternationalscope.Thecorporatemanagementteamwasalsoreviewedandadditionstotheteamwerediscussedandapproved.Thesupervisoryboardgivesthehighestprioritytogoodcorporategovernancepractice.

Thesupervisoryboardalsometwithouttheboardofmanagementandreviewedtheperformanceoftheorganisation,managementissuesandstructuralbusinessdevelopments.Thesupervisoryboardalsometwiththeexternalauditorintheabsenceoftheboardofmanagementtodiscussauditissues.Inthiscontextthefinancialcontrolsystemandtheinternalauditswerereviewed.ThesupervisoryboardmetwithrepresentativesoftheWorksCouncilsinbothStuttgartandNördlingenintheabsenceoftheboardofmanagementtodiscussthetransformationoftheoperationsandswappingoperati-onsbetweenthecompany’ssites,businessdevelopment,opportunitiesandthegeneralatmospherewithinthecompany.

Supervisory board composition and evaluationInordertoprovidemoreassistancetotheboardofma-nagement,in2011thesupervisoryboardwasexpandedtothecurrentnumberofthreemembers.WeareverypleasedthatMr.WilFluit,whohasanextensiveexperi-enceandastrongnetworkintheglobalsemiconductorindustry,hasjoinedthesupervisoryboardandwillprovideadditionalsupportinoperationalandcommercialmat-ters.Thereiscurrentlynoseparateremunerationandauditcommittee;alltopicsarediscussedinthejointmeetingswiththeboardofmanagement,sometimesafterprepara-tionbythechairmanofthesupervisoryboard.


Thesupervisoryboardalsoevaluateditsownperformanceovertheyear2011.Giventhesmallsizeoftheboard,thisevaluationwasperformedwithoutexternalassistance.Topicsofdiscussionweretheindividualcompetencesoftheboardmembers,internalcommunicationandrepor-tingproceduresbetweensupervisoryboardandboardofmanagement.Itwasconcludedthatcompetencesintheareasofmicroprocessortechnology,operations,commer-cialmanagement,strategicmanagement,financeandriskmanagementaswellasinternationalexperiencearesufficientlyrepresentedonthesupervisoryboard.Internalcommunicationandprocedureswithintheboardarecon-sideredadequateforacompanyofthissize.

Duringtheyearthecompanylostaveryvaluableem-ployee:MrManfredSchilling,ahighlyregardedcommer-cialmanager,unexpectedlypassedaway.Thesupervisoryboardwishestoextenditscondolencestohisfamilyandcolleagues.

Finally,thesupervisoryboardwouldliketothanktheboardofmanagementandallstafffortheirgreatandcontinueddedicationandsupportduring2011.Zwolle,23February2012The supervisory boardJ.H.P.M. Stolker, chairmanV.G. TeeW. Fluit

V.G. TeeJ.H.P.M. StolkerW. Fluit

24 RoodMicrotec

Report of the board of management1. General

Theoutlookfor2011wasfarmorefavourablethanfor2010.TheSemiconductorIndustryAssociation(SIA)fore-castagrowthrateofapprox.6%for2011.

Thestartoftheyearwasverypositive-boththeorderportfolioandsalesincreased.Westruggledtomeetde-mand,chieflyasaresultofashortageofengineers.Inthethirdquarter,inparticularduringtheholidayperiod,volumesfellsharply.Thistrendwaspartlyaresultofstockbuild-upsamongcustomers.Inmid-2011,theSIAdowngradeditsforecastto4%.Thethirdquarterwasaparticularlyuncertainperiod,notleastduetopoliticalevents.

Theuncertaintyinthemarketbecamenoticeableinvari-ousindustries.Ontheonehand,investmentskeptbeingpostponed,butalsothepressureonthesupplychaindecreasedsharply,reducingtheequipmentloadinthesecondhalfoftheyear.Eventually,RoodMicrotecrealisedsalesgrowthof1%,slightlyabovethesalesgrowthoftheworldmarketofapprox.0.5%.Theworldwideindustrygrowthof6%onaverageperan-num(adjusteddownwardfrom8%)wasnotachievedin2011.Asasubcontractor,RoodMicrotecbenefitsrelativelystronglyfromgrowthmarkets,whichfailedtoappear.Ingeneral,salesgrowthwasbadlyaffectedbyashortageofengineeringcapacity.

Key developments in 2011WeachievedafundamentalimprovementofourpositionasaSupplyChainManagementorganisation.Thenumberofrequestsforquotesinthisareaisclearlyincreasing.Expandingourengineeringcapacityfortheseactivitiesisvital.

Alexander Fritsch (Supply Chain Management)Outputincreasedby14%inspiteofthetsunamiandthenucleardisasterinJapanandthefloodsinThailand,wheremostofoursubcontractorsarelocated.Salesevenwentupby16%.Also,ourcustomersincreasedby60%.Theyareactiveinvariousmarketsegments,broadeningoursales.

ConcentratingourtestactivitiesinNördlingenandFailure&TechnologyAnalysisinStuttgarthassignificantlystrengthenedourorganisation,allowingustorespondtodemandevenbetter.Subsequently,weputourstrategyonengineeringunderthemicroscopeandwherepossible,wewillbroadenanddeepenourservicesbasedonmarketdemand.Thismeansinteraliathatourengineersmaybedeployedonsite.Nexttotestengineering,wealsofocusonproductengineeringasrelatedtotestengineering.Inordertorealisethis,wewillcontinuetohireengineers.

Operational and commercial objectives achieved in 2011WecontinuedtogaincustomersinFCsthroughout2011,whichwasoneofourobjectives.Ongoingdevelopmentsandadaptingtothisspecificmarketsegmentremainkeyfocusareasforus.IntermsofsalesourpositionintheBeneluxwasstable,butweestablishedmanymorecustomercontacts,whichshouldyieldpositiveresultsoverthenextfewyears.WehavesucceededinreducingoperationalcostsinTestandQualification&Reliability,mainlybyconcentratingourtestactivitiesinNördlingen.Thisoptimisationwillhopefullybearfruitin2012.Theequipmentloadonpartofourmachinesimprovedsignificantly,whichledtocapacityshortages.However,duetothemarketslumptheequipmentloadofother,mostlyoldandlargelywrittenoffequipment,decreased.Wehaveinvestedheavilyinoverhaulingourinternallogisticssystem,resultinginanentirelynewITinfrastruc-turewithfarmorepossibilitiesthanbefore.Thisprojectwillbecompletedin2012.Finally,wehavefurtherdevelopedthemarketsfor‘advan-cedpackages’suchasMEMS(Micro-Electro-MechanicalSystems),Multi-diepackagesandKGDtechnology(KnownGoodDies).


Operational and commercial objectives for 2012Wewillexpandourpositionasasupplychainmanage-mentorganisationfasterbecauseithasprovedtobehighlysuccessfulincombinationwithourotherservices.WewillcontinuetoworkhardongainingnewcustomersintheFCsegment,whichwillrequirestrengtheningourcommercialorganisation.Wewillbeefupourlogisticssystemincombinationwithouroperationalorganisationwithaviewtoimprovingcustomersatisfaction.WeanticipategrowthinEngineering/Consultancy/KAPMinmicro-electronicsandelectronics,includingprintedboards.KAPM(KeyAccountProjectManagement)willbeoneofourfocusareas.

Sales by employee and head count


1.1 Market developments and market position

Thefollowingtrendsmaybeidentifiedinthesemiconduc-torindustry:• ongoingglobalisationandcorrespondingpressure onprices;• ongoingrelocationofbusinesstolow-wagecountries;• customersreassessingtheircorecompetences.

Werespondtothesedevelopmentsbyfocusingspecifi-callyon:• professionalism;• projectsupportbymeansofkeyaccountproject management;• broadeningengineeringsupport.

Salesperfull-timeemployeeincreasedbyapprox.13%fromEUR126,000in2010toEUR142,000in2011.

140135

145

130125120115110105100

9590

2007

Av. head count FTE (fix)

2008 2009 2010

120

130

140

110

100

90

80

7099 125 132 124

2011

111

96105

93

126

Sales per FTE (fix) in EUR x 1,000

142

26 RoodMicrotec

Todaytelecommunicationssatellitesarepartofeveryone’slife.Manyeverydayactivitiesrelyontelecommunicationsatel-litesthatareinorbit,36,000kilometresaboveourheads.Therearemanytypesoftelecommunicationsatellites,withdesignsvaryingaccordingtotheirpurpose.Theyusedifferentorbitsanddifferentfrequenciesandtransmitverydifferenttypesofsignalsatavarietyofpowerlevels.

FotoCredits:ESAphotolibrary


1.2 Strategic development

Wepresentlyhaveastrongmarketposition,especiallyinsouthernGermany.Wewishtoachievefurthergrowthinthesectorsinwhichwearecurrentlyactive,exceptinpure‘standalone’testing.Expansionoftestfacilitieswillbecriticallyassessedandwillonlybeapprovediflong-termcontractsareagreed.RoodMicrotecaimstocontinuetoinvestinthevarioushigh-techsegmentsofitsservices.Thecompanydoesnotruleoutcollaborationand/ormer-gerswithothercompanies,inparticularifthisreducesthevulnerabilityofthecompany.Thiswouldbetothebenefitofallstakeholders.Collaborationand/ormergingwithaprofitablepartyinthesameindustrywouldbeespeciallyattractive,asthiswouldallowtaxlosscarryforwardstobeeffectedearlier.

1.3 Sustainability

‘People,planetenprofit’arekeyelementsinRoodMicro-tec’sstrategy.Intheareaof’people’,westrivetoexplainthestrategyofthecompanyandthecorrespondingobjectivestoouremployeessotheycanhelpthemanage-mentrealisethem.Continuoustrainingisapreconditiontobringingthisabout.Anotherfactorinthesuccessofourorganisationisourfocusonthefourbasicprinciplesofoursocialsystem.Wemustadapttomarketchanges,safeguardcompanycultureandpursuegoal-orientedoperationsandintegration,i.e.matchingproceduresandactions.Ultimately,anyorganisationcanonlyachieveitsgoalsbystrivingtoestablishaperformance-orientedenvironmentforitsemployees,sothattheycanusetheirtalentstofurtherthecompany’sobjectives.

RoodMicrotecstrivestoimproveemployeeevaluationsystemsincludinghowthecorrespondingtargetsareset.Withregardto’planet’,RoodMicrotechasanactiveen-vironmentalpolicyinplacecomprisingtheintroductionofanenvironmentalmonitoringsystemandpreventiveactionstokeepenvironmentalrisksatacceptablelevelsandtomonitorthem.

1.4 Quality management

Thesuccessofourcompanyisdependentonthesuccessofourcustomers,employeesandinvestors.Butitisalsoinourviewconditionalonensuringthequa-lityandmanagementofourprocessesandoperations.Ourcorebusinessistopursueconstantimprovementofthereliabilityandreproducibilityofourservicesandproductsandtheefficiencyofourprocesses.RoodMicrotec’sintegratedmanagementsystemisderivedfrominternationalstandards.RoodMicrotecNördlingeniscertifiedtotheISO14001standardandtheISO/TS16949standard.Thiscertifica-tionistheresultofacollaborationbetweenISOandIATF(InternationalAutomotiveTaskForce)andisrecognisedbyallautomotiveQS-9000andVDA6.1-orientedindustries.TheQualification&ReliabilityandFailure&TechnologyAnalysislabsinStuttgartandNördlingenarecertifiedbytheDAkkSDeutscheAkkreditierungsstelleGmbH(Ger-manAccreditationBody)basedonISO/IEC17025‘generalrequirementsforthecompetenceoftestingandcalibra-tionlaboratories.’Thisenablesustoperformverificationsforpublicreference.Withourproductsandservicesweaimtoexceedcusto-mers’expectationsintermsofqualityandprice.

Certified by RoodMicrotec

28 RoodMicrotec

1.5 Sales and result

In2011RoodMicrotec’ssalessawalimitedincreasecomparedto2010.Netsalesbrokendownbycustomercategory/sectorarepresentedbelow.

(xEUR1,000) 2009 2010 2011

Automotive 4,120 7,473 5,491Telecoms 894 590 385Industrial/Medical 3,788 4,659 7,222ElectrDataProc. 799 875 904Consumer 727 586 610Hi-Rel/Space 1,594 1,380 1,105

11,922 15,563 15,717

Revenue by market segment


Thesalesresultsofthebusinessunitswereasfollows.

(xEUR1,000) 2010 2011 Approx.change

Test 7,658 7,264 -5.1%SupplyChainManagement 3,060 3,556 +16.2%Failure&TechnologyAnalysis 1,842 1,667 -9.5%TestEngineering 762 887 +16.3%Qualification&Reliability 2,241 2,343 +4.5%

Total 15,563 15,717 +1.0%

8,0007,0006,0005,0004,0003,0002,0001,000

0

2010 2011


Exceptional expenditure

In2011,weincurredexceptionalexpendituretotallingEUR550,000:

Themainitemswere:

1) Settling a dispute with a consultancy firm: EUR 110,0002) Lump sum payments in the context of restructuring the Test division: EUR 185,0003) Consultancy costs for the restructuring: EUR 75,0004) Additional consultancy costs due to AFM questions: EUR 40,0005) Impairment of specific receivables EUR 140,000

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

6,124

7,486

4,574

7,658

1,853 2,26

92,29

72,24

1

8721,6

69 1,737

1,842

677

1,008

1,233

762

2,08

162

5

3,06

0

7,264

2,34

3

1,667

877

3,556

2010 2011

Revenue by Business Unit

Note:2008includingmicrotec-figuresofthe2ndhalf*:CalculationforSCM(SupplyChainManagement)hasbeenchangedin2008

RoodMicrotec’sconsolidatednetsalesroseby1%toEUR15,717,000(2010:EUR15,563,000),whiletheEbitremainedstableatEUR709,000(2010:EUR733,000).

Allpendingclaimshavenowbeensettled.NetearningsonbalanceincreasedtoEUR588,000(2010:EUR448,000).Thisequatestoearningspershare(averagenumberofsharesinissueinthefinancialyear)ofEUR0,02(2010:EUR0,01).

30 RoodMicrotec

Asconsumers,wearesurroundedbyequipmentwithsensorsinourhomesanddailylives.Asensoror‘feeler’isanartificialversionofwhatinbiologyiscalledasense.Mostsensorsareelectricalormechanical,buttherearealsosoftware-basedand‘virtual’sensors.Throughsensors,machinesexperiencetheirenvironmentorgatherinformationthatallowsformanage-mentofindustrialorinformationprocesses.Thismightbethethermostatofyourcentralheatingsystemoraphotocamera,butalsodishwashers,pinmachinesinshopsoraliftweabsentmindedlystepinto.Inmanysports,forexamplespeedska-ting,sensorsareattachedtotheathletes’anklestoguaranteeaccuratetimereadings.


AswehavementionedintheAnnualReportsof2010wehaveinvestedcapitalofEUR1,994,000inaGermanPension fundcalled“Unterstützungskasse”.AccordingtoIAS19:7oftheIFRSstandardswehaveselectedthepolicytoaccount thisasplanassetsandthusasapartoftheretirementbenefitobligations.

1.6 Investments and financing

In2011,investmentsintangiblefixedassetstotalledEUR1.0million(2010:EUR0.7million);additionally,equip-mentwasleasedwithatotalvalueofEUR0.2million.DepreciationwasEUR1.2million(2010:EUR1.6million).Theseinvestmentswerepartlyfinancedfromoperatio-nalcashflow.Forthenextfewyears,weanticipatethat

investmentswillremainlimitedduetovarioussynergybenefits.Atyear-end2011,equitywasEUR6.1million,an8.7%incre-asecomparedtoyear-end2010(EUR5.6million).Solvencyimprovedto47%(year-end2010:41%).

2. Report by business unit and department

2.1 Supply Chain Management (SCM)

ProfileInthisbusinessmodelRoodMicrotecsupportscustomerswhowishtobringhigh-qualitysemiconductors,inparti-cularASICsandASSPs,intotheworldwidemarket.Inmanycases,theproductsaredevelopedinEurope,whilethechipsarepackagedinAsia.Afterqualitycontroltestingandverification,distributiontotherestoftheworldisusuallyperformedfromEurope.

RoodMicrotecprovidesallservicesstartingfromthedeve-lopmentprocess(incollaborationwithdesignpartners)allthewaytodeliverytocustomers,includingengineeringsupport,testengineering,wafertest,assemblythroughpartners,finaltest,qualification,failure&technologyanalysisandlogistics.Weachievethisbyqualifyingandtestingthereliabilityofbothsuppliersandproductsandonrequestweperformtheentireprojectmanagementforthisprocess.RoodMicrotecisabletomanagetheEnd-to-Endprocess(flow),butcanalsoprovideeachindividualstepsepara-tely.

Key developments in 2011Wehiredanewsupplychainmanager.Despitelosingakeycustomerthroughbankruptcyandnaturaldisasters(thetsunamiandnuclearcrisisinJapanandfloodsinThailand,whereourmainsubcontractorsarelocated),weraisedrevenueby16%andincreasedthenumberofdevicesprocessedby14%.

Objectives realised in 2011Werealiseda16%salesincreasecomparedto2010andwereabletoclosenewcontractsfor2012forahighernumberofdevices,interaliabysuccesfullyextendingour

long-termpartnershipwithoneofourmaincustomers.Thenumberofnewcustomersincreasedby60%,derivingfromdifferentmarketsegments.Thisriseconfirmsourpositionasafirst-classone-stop-shoppingsupplychainproviderinEurope.Wehandledmorethantwiceasmanycallsforquotesasin2010.Finally,wepresentedoursupplychaincapabilitiesataroadshowinAmsterdam,anexhibitioninMunichandafablessdesignconferenceinParis.

Objectives for 2012Weaimtoachievefurthergrowthin2012and2013,toincreasethenumberofcompletesupplychaincustomers,includingdesign,andstriveinparticulartodoublethenumberofcustomersandprojects.Wewillalsointensifyourpartnershipssoastobeabletoofferawiderrangeofservicestoourcustomersandprovideevenmoreflexibility.

2.2 Engineering, Consultancy and Key Account Project Management

IntroductionInrecentyears,RoodMicrotechasintroducedhighlyef-fectivekeyaccountprojectmanagementforallcustomerprojects,alsoinvolvingmultiplebusinessunits.Thisinvolvescarryingouttheentireprojectstartingintheproject’stenderingphasewiththepreparationoftheprocessflow.Projectsaremonitoredaccordingtotheflowandcustomerrequirementsallthewaytotheproject’scompletion.

32 RoodMicrotec

Besidestheorganisationalfollow-up,technicalsupportespeciallyofSCMprojectsrequiresdetailedattention.Thenewengineeringgroupbridgesthegapbetweende-signandtestofacomponentbyintroducingtheassemblyandinterconnectiontechnologyinthedevice(chiptopac-kage,e.g.bonding)andbetweendeviceandprintedboard(e.g.soldering).Thenewengineeringgroupwillsupportourcustomersintheareaofassemblyandinterconnec-tiontechnologybyprovidingsolutionsfornewdevicesandproductsandfailureanalysisandcorrectiveactionsonexistingboardsanddevices.WiththisserviceRoodMicrotechasmadefurtherstepsinits‘OneStopService’approachforthesemiconductorback-endmarket.

2.3 Business unit Test & End-of-line Services

Test activities profile ThebusinessunitTest&End-of-lineServicesfocusesontesting,programming,scanningandscreeningofsemi-conductors.ThebusinessunitoperatesasadirectsubcontractorforIDMsandforpartnerslikeOEMsandFCs.Abroadmixofcustomersisandwillremainimportantforastableposi-tioninthemarket.ThefacilitiesarelocatedinNördlingen.

Key developments in 2011Lastyear,wewereabletoimprovetheequipmentloadbyconstantlymaintainingtheequipment.GoodinternaltrainingaswellastrainingbyATE(AutomaticTestEquip-ment)manufacturersenabledustoreducethefailurerateandsotoincreasethenumberdevicestestedanddelivered.Objectives realised in 2011MovingthetestequipmentfromStuttgarttoNördlin-genpresentedaconsiderablechallenge.Itinvolvedthecompleterelocationofoperationalcapacity.Therelocationwascoordinatedwithourcustomers‘requirements.(Inaddition,alltestprocessindicatorsandresultshadtobecorrelated.)Wewillneedflexiblestafftoachievetheobjectivesoftherelocationandguaranteetheoptimisationoftheseservi-ces.Furthermore,ouremployeeshavequicklyfamiliarisedthemselveswiththenewequipment,andhavetheknow-howtousethemtoimproveefficiency.

Objectives for 2012Oneofourprioritiesfor2012istoraiseproductivityfurtherandmakebetteruseoftheavailableequipment.AmajorissueinthiscontextistheintroductionofOCRSoftware(OpticalCharacterRecognition)fortheproductstransferredfromStuttgart.Itisusedtoexcludefailuresinassigningwafermapstowafers.Furthermore,thecleanroominNördlingenwillbeturned90degreestopositionthetestersandhandlersefficientlyfortheoperators.Thiswillhelptoreducestoppagesduetofailuresandimproveproductivity.Anoverhauloftheshiftsystemandachangeinshift

structureshouldalsoproducebenefits.Nextyear,wewillstrivetofurtherimprovesystemreliabilitythroughpreventivemaintenance.

2.4 Business unit Test Engineering

Profile of test programme developmentThebusinessunitTestEngineeringfocusesondevelopingtestsolutionsformixed-signalanddigitalICsincludinghardwareandsoftwaredevelopmentforstate-of-the-artautomatedtestequipment(ATE)andPC-basedrack&stackset-ups.Theseproduct-specifictestsolutionsoftenintegratespecificexternalcomponentssuchasvectornet-workanalysersandRFsignalsourcesinordertoincreaseflexibilitywhilelimitingcost.Theyareusedinproductiontestingandqualificationtothehigheststandardssuchasrequiredbyautomotive,high-reliability,telecometc.(AEC-Q,ESCC,MIL-STD,JEDEC,TELCORDIA,IEC,DIN).Servicesintestandproductengineeringincludedesignfortest,designformanufacturing,testtimereduction,yieldimprovementanddataanalysis&statistics.Additi-onaladded-valueengineeringservicesaretesttransfer&conversion,platformconversion(incl.hardware),ramp-upandvalidation.Alltheseservicesarealsoavailableason-siteengineeringsupportforthecustomer.

ThebusinessunitTestEngineeringhasextensiveknow-howontesterplatformsincludingTeradyne,CredenceSZ,CredenceDuoandD10,AdvantestDigitalaswellasLabView.Applicationknow-howhasbeendevelopedspecificallyformixed-signal,digital,analog,memory,RFapplicationsandalsoforimagesensors,MEMS(incl.interfaces)andPCapplications.

ThebusinessunitTestEngineeringhasabroadrangeofcustomers,mainlyintheareaofmixed-signalapplicationsintheautomotive,aeronauticalandspace,radiofre-quency,medicalandindustrialsectors.CustomersincludeOEMs,IDMsandFCsworldwide.Thetestequipmentisselectedbasedontestcost(testtime,yield)andtestquality(testcoverage,accuracy)oroncustomer-specificrequirements(preferredtestsystem).In2012,wewillimplementourstrategytofurtherintegrateTestEngineeringintootherRoodMicrotecservices.Inthiscontext,TestEngineeringwillactbothasanexternallydrivenbusinessunitandasanin-houseserviceprovider,forexampleforthecustomerreturnorqualificationbusiness.ThisstrategymakesRoodMicrotecmorecompetetivewithinthemarketsandimprovesthecompany’sattractivenessforourcustomers.In2011,theHermesprojectdevelopedsuccessfully.Thehardwareset-upwasfinalisedandreleasedforproduc-tion.Thetestsoftwarewasdevelopedfortestinganauto-motivedemonstratorformicrocontrollerapplications.Theprojectwillbecompletedinthefirstquarter2012.

TheHermesproject,inwhichRoodMicrotecisoneof11


partners,includesglobalplayerssuchasAT&T,Infineon,Siemens,BoschandThales.Itaimstofurtherdeveloptheconceptofembeddingthinchipsinelectronicboardsasabasisforintegratedmanufactureofelectroniccircuits.

Objectives realised in 2011WhiledemandfortheVerigy93000testsystemwaslimitedin2011,theengineeringcapacityforTeradyneFlexsystemswasdoubledandexternalservicesonTeradyneFlexsystemswerestronglyimproved.In-houseproductionsupportwassuccessfullyestablished.DueinparticulartothetestproductionrelocationfromStuttgarttoNördlingen,manyadditionaltestengineeringprojectsarecurrentlyinprogress.Planningforactualandupcomingprojectswasimprovedbyintroducingprojectplanningtools.Weachievedpositivesalesgrowthforthefullyearcompa-redto2010.

Objectives for 2012Aconsiderableexpansionofengineeringcapacityisplan-nedtoincreasesales.Newandseniorengineerswillbetrainedonnewtestsystems.Broadeningourengineeringbusinessthroughexternalconsultantssupportstheplannedsalesgrowth.WewillaimtoraisetheproductivityoftheTestdepart-mentbystrengtheningproductionsupport.

2.5 Business unit Failure & Technology Analysis

ProfileRoodMicrotec’sextensivelyequippedfailure&techno-logyanalysislaboratoryiscapableofprovidingfailure,constructionandqualification-relatedanalysisofallkindsofelectronicpartslikewafers,integratedcircuits,discretecomponents,electromechanicalcomponents,printedcir-cuitboardsandcompleteprintedboardassemblies.Thesevarioustypesofanalyticalinvestigationscanbeperfor-medaspartofareliabilityassessment.Thisservicewillbecompletedwithfocusedionbeam(FIB)servicesandconsulting/linesurveysconcerningelectrostaticdischarge(ESD).

Failure & Technology AnalysisAnalysisofdefectivedevices(failure&technologyana-lysis)iscarriedoutusingphysical,chemicalandmetal-lurgicalanalyticalmethods.Thesemethodsareappliedtoconfirmcustomer-complainedfailures,toidentifytheareaofthedefectandthefailuremechanisms,andtoinitiatecorrectiveactionsforqualityimprovement.Intheareaofintegratedcircuits,newtechnologieswithreducedfeaturesizerequireexpandedandexpensivecapabilities.There-forestrategicpartnershipsmustbeestablishedtoshareequipmentandreduceinvestment.

Construction Analysis and DPAConstructionAnalysisandDestructivePhysicalAnalysis(DPA)canbeperformedaspartofareliabilityassessment.Theobjectiveofconstructionanalysisistheearlyidenti-

ficationofpotentialdeficienciesthatcancausezero-hourfailuresorreliabilityproblems.Thesetestsarerequiredforallcomponentsusedinaerospaceapplications.RequestsforDPAsareverystableastheaerospacemarketislesssensitivetoeconomiccycles.

Qualification-related AnalysisQualification-relatedanalysesarecarriedoutbeforeandaftervariousqualificationtestsperformedbyourownQ&Rlaboratory.Thepurposeoftheseinvestigationsistodeterminetheinfluenceoftheseenvironmentaltestsonpackageandchip-relatedproblems.

FIB serviceWithourhighlysophisticatedfocusedionbeam(FIB)weofferourcustomerschipmodifications,circuitediting,microcross-sectioning,TEMlamellapreparation,micro-machiningandapplicationsofmaterialscience.ThebusinessunithasabroadEuropeancustomerbase,primarilyintheautomotive,aeronauticalandaerospaceindustries.Goodserviceistime-driven.Thereforewehaveincreasedthenumberofoperatorstoincreasetheopera-tinghoursperdayby50%ifrequired.Inthefinalquarterof2011wesawincreasingdemandforcoppermodifica-tion.Ourstrategytakesaccountofthistrend.

Key developments in 2011Thetransferoffailure&technologyanalysisequipmentandstafffromNördlingentoStuttgartandtheconcen-trationofallfailure&technologyanalysisactivitiesinStuttgarthavebeencompleted.ThecollaborationwithEMPAinSwitzerlandwasextendedfurther.Partoftheexpandedequipmentcanbeusedbyourownoperators.Ourcustomersconfirmedtheoutstandingqualityofme-tallographicpreparationandlight-opticalmicroscopy.ThenumberofFIBoperatorswasincreasedtoimproveequipmentload.

Objectives planned in 2011TheintroductionofcopperFIBhasbeenpostponedtothefirstquarterof2012.In2011wefocusedonincreasingoperatorcapacity.Inthelastquarterof2011wesawrisingdemandforcoppertechnology.Theintroductionofanewservicedevelopedtoidentifyfailuresonceramiccapacitorsduringprintedboardas-semblywascompleted.Thisnewtechnologyhasbeenaddedtoourportfolio.Marketfeedbackispositiveandthefirstordersareplannedforthefirstquarter2012.

Objectives for 2012InresponsetomarketdemandswewillintroducecopperFIB.Electromobilityisagrowingmarket.Wehavetotakethistrendonboardandplantointroducenewservicesforhigh-powerelectronics.Partnershipswithinstitutesanduniversitieswillbesetuptoextendourcapabilitiesbyexpandingourequipmentportfolio.

34 RoodMicrotec

Medicalequipmentinhealthcareisfullofsensorsthatbenefitthepatient.Thepatientisunawareofthesensors,buttheyimprovetheperformanceoftheequipmentsignificantly.Oneexampleisbloodpressuremeters,whichcanmeasurebloodpressurehighlyaccuratelyduetoconstantlyimprovingsensors.Anotherexampleishemodialysismachines,whichfilterpatients’blood.Aftereveryuse,partsofthemeteraredisinfectedautomatically.IntheMedicalTechnologydepartmentoftheIsalaclinicsinZwolle,thehospitalequipmentiscarefullycheckedandre-pairedbeforebeingputbackintoserviceinthevarioushospitalwards.TheMedicalTechnologyDepartmentcomprisesateamofmedicalinstrumentationtechnicians,eachofwhichspecialisesincertaindepartmentsortypesofmachines.Forexample,thereisaDialysisTeam,anOT/ICteam,anImagingTeam,aFunc-tion/Generalteam,aPrecisionEngineeringteam,butalsoaMaintenanceTeam.


2.6 Business unit Qualification & Reliability

ProfileThebusinessunitQualification&Reliability,withsitesinNördlingenandStuttgart,focusesoninvestigatingelec-tricalcomponentslikesemiconductors,passivesandPCBsinvariousstressenvironments.Testingtheproductsunderextremeconditionssuchasclimaticandtemperaturechangesaswellasundervibrationandmechanicalshock.Theinvestigationsdeterminewhetherthecomponentsmeettherequiredqualificationstandards.Usingburn-in(monitoredorstandard),componentsarestressedinordertoidentifypartspronetoprematurefai-lure.Thisprocessforcesdefectivesemiconductordevicestofailbeforetheyareincorporatedintoassemblieswheretheycancausereliabilityproblemsintheend-product.Thebusinessunitisoneoftheleadingindependentcer-tifiedtesthousesinEurope.Mostproductsaretestedfortheaerospace,automotiveandmedicalsectors.OurmaincustomersareinthesesectorsandinFCandOEM.

Key developments in 2011InconjunctionwiththerelocationoftestactivitiesandequipmentfromStuttgarttoNördlingen,thetestingactivitiesforqualification,reliabilityandburn-intasksarenowalsobasedinNördlingenandmaintainedbythesamequalifiedstaff.Thissimplifiesplanningactivitiesaswellasshorteningtheprocessingtime.Qualificationtestsofhighpowerandhighvoltagedeviceshavebeensuccesfullyintroducedandperformed.Avo-lumeproductionburn-inhasbeenaddedtotheusualsafelaunchburn-inoperationaltasks.Arestructuringofthebusinessunithasbeenstartedandisongoingwithinitialpositiveindicators.Attheendof2011,anadditionalengineerandtechnicianwerehired.Furtheron-callworkersareonboardtoreducethecostofperformingmanualoperationaltasks.Eveninthefaceofthedownturninthesecondhalfoftheyear,thebusinessunitwasabletogeneratemoderatepositivegrowthforthefullyearcomparedto2010.Therewasnosignificantgrowthdifferencebetweenthefirstandsecondhalfoftheyear.

Objectives for 2012Weaimtomaintainandimprovethedepartment’sgrowthatleastinlinewithinRoodMicrotec’stargets.Activitiestofurtherimprovethefinancialindicatorsofthebusinessunitwillbecontinued.Weareplanningtomergethequalification&reliabilitydepartmentwiththeburn-indepartmentinordertocom-binetheavailableresourcesandbringaboutsynergies.Thiswillimprovethebusinessunit’sfinancialsituation.Productandservice-relatedobjectivesaretofocusonnewmarketsegmentsaswellasadditionalservicesintheburn-inarea.

2.7 Research and development

Hermes projectInadditiontothedefinitionofdifferentconceptsfortes-tingandhandlingPCBswithembeddedcomponents,Her-mes’mainfocusareain2011washardwareandsoftwaredevelopmentfortestinganautomotivedemonstrator.InthecontextofthismicrocontrollerapplicationanewhandlingmethodforPCBs,usingacommonwaferprober,wasevaluated.Aspecifictestprogramforalimitedfunctionalitycheckwasdevelopedandapprovedwithacorrespondinghardwaretestset-up.Theeligibilityofthisconceptwasverifiedbytestingnearly400demonstratorsamples.TheHermesprojectisplannedtobecompletedwithafinalpresentationtotheEUcommissionbeforetheendofMarch2012.MANOS projectMANOS(modulardesignofsystemswithnano-modifiedsurfacesforautomotiveandindustrialsensors)ThisBMBF(FederalMinistryofEducationandResearch)projectwasstartedinSeptember2011withotherprojectpartners(WÜRTHELEKTRONIK,ContiTemic,Sick,Kerona,DELO,FraunhoferIZM)supportedbyVDI/VDE-IT.Thepro-jectwillrunfrom2011to2014.RoodMicrotec’staskisqualificationandreliabilityinvesti-gationanddevelopingthetestenvironmentandrequire-mentsforstackedembeddedsensors.

Theobjectiveofthe‘Integratedmicrophotontransmitterfor100Gb/sdatatransmissionrate’projectistodevelopasuitableassemblyprocessforphotonicmicro-systemtransmitters.ThesponsoredpartnershipprojectisintheconceptphaseunderdirectionofFCI,FraunhoferHeinrich-Hertz-Institut’s(HHI).RoodMicrotectaskistoevaluatetherisksduringtheas-semblyprocessandqualificationandreliabilityinvestiga-tionformicrophotontransmittermodules.

2.8 Events after balance sheet date

Nosignificanteventshavetakenplaceafterbalancesheetdate.

Board of managementPh.M.G. Nijenhuis

Zwolle, 23 February 2012

36 RoodMicrotec

Corporate social responsibility1. General commitment

RoodMicrotec’smissionistoimprovethequalityofpeo-ple’slivesthroughthetimelyintroductionofmeaningfultechnologicalinnovations.Inaworldwheretechnologyincreasinglytoucheseveryaspectofourdailylives,Rood-Microtecaspirestobealeadingsolutionsproviderintheareasofhealthcare,lifestyleandenablingtechnology,delightingitscustomerswithproductsandservicesthatmeetandevenexceedtheirexpectations.

RoodMicrotecwishestobearesponsiblepartnerinsociety,actingwithintegritytowardsitsshareholders,customers,employees,suppliersandbusinesspartners,competitors,governmentsandtheiragenciesandotherswhomaybeaffectedbyitsactivities.RoodMicrotecdulyobservestheapplicablelawsandregulationsofthecountriesinwhichitoperatesandregularlyreviewsitsinterestsandthoseofaffectedpersonsorentitiesinordertoensureahealthy,long-termrelationshipwiththem.RoodMicrotecendeavourstoadapttolocalsituationsinordertotakethemostappropriateapproachtopossibleproblemswithintheboundsofapplicablelawandrespon-sibleconduct.InthisrespectRoodMicrotecsupportstheprincipleofdialogueandcooperationwithallpartiesinvolved.

1.1 Human rightsWithdueregardtotheUniversalDeclarationofHumanRights,whichstatesthatallpartiesinsociety,includingcorporateentities,haveadutytorespectandsafeguardhumanrights,andwithintheframeworkofthelegitimateroleofbusinesses,RoodMicrotecsupportsandrespectshumanrightsandstrivestoensurethatitsactivitiesdonotmakeitanaccessorytoinfringementsofhumanrights.

1.2 Free market competitionRoodMicrotecsupportstheprincipleoffreemarketcompetitionasabasisforconductingitsbusinessandobservesapplicablecompetitionlawsandregulations.

1.3 Product safetyRoodMicrotecaims,atalltimes,tosupplysafeproductsandservices.

1.4 PrivacyTheprivacyofpersonallyidentifiableinformationaboutcustomers,employees,businesspartnersandotherindivi-dualswillbeprotected.

1.5 Environmental protectionConsistentwithRoodMicrotec’scommitmenttosustai-nabledevelopment,itwilldoallthatisreasonableandpracticabletominimiseanyadverseeffectsofitsactivitiesontheenvironment.

2. Commitment towards customers

RoodMicrotecisdriventoimprovepeople’slives.Itsgoalistoconstantlydelighteachcustomerwithbreakthroughsbothlargeandsmall.Tothisend,thecompanyseekstomaintainanongoingdialoguewithitscustomers.Rood-Microteciscommittedtolistentoandlearnfromthem,sothatitisabletodesignanddeliverthesolutionstheyreallywantandneed.RoodMicrotecwillalwaysdealwithitscustomersinafairandforthrightmanner,maintainingthehighestlevelsofintegrity.

3. Commitment towards shareholders

ItisofcentralimportancetoRoodMicrotectoconductitsoperationsinaccordancewiththehigheststandardsofinternationallyacceptedprinciplesofgoodcorporategovernance.RoodMicrotecaimstoachieveasatisfactoryreturnonequity,withtheintentionifpossibleasustai-nabledividendpaymenttoshareholders,whileatthesametimeretainingsufficientfundsinthecompanytogenerateprofitablegrowth.RoodMicrotecattachesgreatvaluetoitsrelationswithitsshareholdersandthefinancialmarketsandprovidestimely,regularandreliableinformationonitsactivities,structure,financialpositionandperformance.

4. Commitment towards employees

RoodMicrotecvaluesitsemployeesasakeyresource.Anatmosphereofgoodemployeecommunication,involve-mentandresponsibilityisofcentralimportance,andanemployee’spersonaldevelopmentandoptimumuseoftalentsisencouraged.

4.1 Right to organiseRoodMicrotecrecognisesandrespectsthefreedomofemployeestochoosewhetherornottoestablish,ortoassociatewith,anyorganisation.RoodMicrotecrespects-withintheframeworkof(local)law,regulationsandprevailinglabourrelationsandemploymentpractices-therightofitsemployeestoberepresentedbylabourunionsandotheremployeeorganisations,andRoodMicrotecwillengageinnegotiations,eitheronitsownbehalforthroughemployers’associations,withaviewtoreachingagreementonemploymentconditions.


4.2 Health and safetyRoodMicrotecwilldoallthatisreasonableandpracticabletoprotectthehealthandsafetyofitsemployees.

4.3 Equal and fair treatmentEveryemployeehasequalopportunitiesandwillbetreatedequallyinemploymentandoccupationregardlessofpersonalbackground,race,gender,nationality,age,sexualpreferenceorreligiousbelief.Thesameappliestotherecruitmentofemployees.RoodMicrotecstrivestoof-ferequalpayforequalworkperformedatequallevelsatsimilarlocations.Noformofharassmentordiscriminationwillbetolerated.

4.4 Wages and paymentRemunerationandworkinghoursshallcomplywithlocallabourlawsandshallbeinlinewithprevailingindustrynorms.

5. Commitment towards suppliers and business partners

RoodMicrotecpursuesmutuallybeneficialrelationshipswithitssuppliersandbusinesspartners.Itseekstoawardbusinesstosuppliersandbusinesspartnerswhoarecommittedtoactfairlyandwithintegritytowardstheirstakeholdersandwhoobservetheapplicablelawsofthecountriesinwhichtheyoperate.

6 Assets and information

6.1 Use and protection of assetsEachemployeeisresponsiblefortheproperuse,pro-tectionandconservationofRoodMicrotec’sassetsandresourcesaswellasconfidentialinformationdisclosedtoRoodMicrotecbyitsbusinesspartners.RoodMicrotec’sassetsandresourcesaswellasanyopportunitiesarisingbyvirtueofone’sposition,aretobeusedsolelytopursueandachieveRoodMicrotec’sgoalsandnotforpersonalbenefit.

6.2 Improper disclosureRoodMicrotecregardsinformationforthepurposeofitsbusinessasacorporateassetthatmustbeprotectedagainstloss,infringementandimproperuseanddisclo-sure.

RoodMicroteciscommittednottomakeuseofinformati-ondisclosedtoitbyathirdpartyifitissuspectedthatthedisclosertherebyviolatesanobligationofconfidentiality,unlesstheinformation:

• isgenerallyavailabletothepublicotherthanasa resultofdisclosurebyRoodMicrotec;• hasbeenindependentlydevelopedbyRoodMicrotec;• orbecomesavailabletoRoodMicroteceitherona non-confidentialbasisfromathirdpartywhoisnot boundbyanyconfidentialityobligationsorby operationoflaw.

6.3 Insider trading AllemployeesshallcomplywithRoodMicrotec’sinsidertradingrules.Thismeansthatnon-publicinformationwhichmightinfluencethemarketpriceofRoodMicrotecsharesshallbekeptinstrictconfidenceuntilpubliclyreleasedbyaut-horisedmanagement.Furthermore,employeeswhohavesensitiveinformationwhichcouldinfluencethepriceofRoodMicrotecsharesandrelatedrights,mustrefrainfromdirectlyorindirectlyexecutingtransactionsinRoodMicro-tecsharesandrelatedrights.Additionally,employeeshavetocomplywithstatutoryrulesandregulationsconcerninginsidertradingwithrespecttosecuritiesofotherlistedcompanies.

Holger Pross (Sales & Marketing Manager)

38 RoodMicrotec

7 Business integrity

7.1 Bribery; records of transactionsRoodMicrotecinsistsonhonesty,integrityandfairnessinallaspectsofitsbusiness.Bribesinanyformareunac-ceptable;commissionpaymentsandpersonalgiftsorfavoursmayonlybemadeoracceptedinstrictaccordancewiththeGBPDirectives.RoodMicrotecstrivestocomplywiththehighestlevelsoftransparencyandaccountabilitythroughoutthecompany.Recordsoftransactionsshouldbemaintainedinanaccurate,completeandtimelyman-nerinaccordancewithRoodMicrotecaccountingprinci-ples.Nounrecordedfundsorassetsshouldbeestablishedormaintained.

7.2 Third-party interestsEmployeesarenotallowedtohaveanydirectorindirectfinancialinterestinasupplierorcompetingcompanywiththeexceptionofafinancialinterestinapubliclytradedcompany.

7.3 Political paymentsRoodMicroteccompaniesshallnotmakepaymentsordonations,inmoneyorinkind,topoliticalparties,poli-ticalorganisationsorindividualpoliticians,unlesssuchpaymentsaremadeinstrictaccordancewiththeGBPDirectives.

8 Observance of the General Business Principles

8.1 SanctionsAllRoodMicrotecemployeesmustcomplywiththeGene-ralBusinessPrinciples.Violationmayleadtodisciplinaryaction,includingdismissal,notwithstandinganyfurthercivilorcriminalactionthatmaybeinstigated.

8.2 Whistleblower policyInordertopromotethereportingofviolationsoftheGeneralBusinessPrinciples,awhistleblowerpolicyisinplace,enablingemployeestosubmitcomplaintsonananonymousbasiswithoutfearofthecomplaintsleadingtodisciplinaryaction.

8.3 ComplianceCompliancewiththeGeneralBusinessPrinciplesismo-nitoredbyacomplianceofficer,whoregularlyreportstotheboardofmanagementandsupervisoryboardonthedeploymentoftheGeneralBusinessPrinciplesandonethicalissuesingeneral.ReportingoncompliancewiththeGeneralBusinessPrinciplesisalsoanintegralpartoftheStatementonBusinessControlsissuedannuallybythemanagementaspartofacascadeprocessleadingtoCEO/CFOcertificationofthecompany’sannualaccounts.ComplianceprocessesandproceduresareauditedbyRoodMicrotec’sauditcommittee.

Further information: www.roodmicrotec.com/fileadmin/user_upload/Investor_Relations/Legal_Information/business_principles_of_RoodMicrotec_NV.pdf

Board of managementPh.M.G. Nijenhuis

Zwolle, 23 February 2012

Jürgen Gruber (Failure & Technology Analysis Manager)Weintroducedanewservicetoidentifyfailuresonceramiccapacitorsduringprintedboardassembly.Thisnewmethodmeanslessworkandeffortandthereforelesscost.Thefirstordershavebeenannouncedforthefirstquarter.


Risk managementGeneralOurpolicyisaimedatgrowthinconjunctionwitharelativereductionofmarketrisks.Operational,market-relatedandfinancialaspectsplayanever-increasingroleinachievingthis.

Operational

SalesSalesinTest&End-of-lineServicesmakeupapprox.50%oftotalsales.Inthissectorwehaveastrongreputationandwehavebuiltuparelationshipoftrustwithourmajorcustomers.Saleshavebeenstableovermanyyears.Thespreadingwithinourcustomerbasehasincreasedstronglyoverthepastfewyears,whichhasreducedrisk.Whilewehavelong-termcontractswithmostofourmajorcustomers,thesecontractsdonotincludepurchaseguarantees.Risksaremitigatedbyintensivecommunica-tionwithcustomersonanticipatedvolumes.OthersalesaremadeinthesectorsQualification&Relia-bility,Failure&TechnologyAnalysis,TestEngineeringandSupplyChainManagement.Wefocusonhigh-endwork,whichfurtherreducesoperatingrisks.

CostsGlobalisationisputtingincreasingpressureonprices,inparticularinTest&End-of-lineServices.Thisrequiresconstantfocusonimprovingcostmanagement,reducingcostsandoptimisingthetestequipmentload.Thesalariesandassociatedpensioncommitmentsarealsomonitoredclosely,astheymakeupalmosthalfoftotalcosts.UsingtemporarystaffisvitalforRoodMicrotec’soperationsinGermanyinordertoreducerisks.Currently,therearemanyemployeesonpermanentstaffinTest&End-of-lineServices.Inothermarketsectorsinwhichhigh-qualitystaffisbeingused,thereisalimitedstaffsurpluscostrisk.ThereisashortageofhighlytrainedtechnicalstaffinEurope.

Qualified staffInviewoftheadvancedtechnologicallevelofouropera-tions,thecompanyishighlydependentonqualifiedstaff.Asitisnotalwayseasytofindsuchstaffintheemploy-mentmarket,wehaveoptedtosetupourowntrainingprogrammeinordertoreducetheriskofnotbeingabletoattractqualifiedstaff.Wealsocollaboratewithenginee-ringfirms.ThefactthatRoodMicrotechasbranchesintheuniversitycitiesStuttgartandDresdenputsitinabetterpositiontorecruithigh-qualitystaff.

Market risksMarketWeoperateinahighlycyclicalmarket,whichhascontrac-tedinEuropebutcontinuestogrowinAsia.Theuseofsemiconductors,however,continuestorise,alsoinEurope.TheyareincreasinglyimportedfromAsia.Wehaveoptedforthisgrowthsegment–thesupplychainfromEuropetoAsiaandbacktoEuropeandtherestoftheworld–fromthepointofviewofriskmanagementasitbettersafeguardscontinuity.VariouscustomersuseRoodMicrotecasawaytogenerateadditionalsalesinashorttimespan,whichincreasesthecompany’sexposuretomarketfluctuations.Inviewofthis,weareincreasinglyfocusingoncustomerswhowishtooutsourcetheirtestactivitiesonalong-termbasis,suchasFCsandOEMs.Thisexposesthecompanytotheupswingsanddownturnsofthemarket,butalsoallowsittogeneratesalesduringdownturnstocustomerswhooptforoutsourcing.RoodMicrotec’sidealandpreferredformofoutsourcingisforcustomerstocontractoutalltheirengineering,qualifi-cation&reliability,failure&technologyanalysisandtestactivities(totaltestsolution)toRoodMicrotec.Inparticularinfailure&technologyanalysisandtestengineering,whichhaveexcellentgrowthperspectives,notbeingabletohiregoodengineerspresentsasignifi-cantrisk.RoodMicrotecmitigatesitsrisksthroughanactiveperson-nelpolicyseekingabalancebetweenpermanentandtemporarystaff.

CompetitionInEuropewearefacedwithcompetitionfromanumberofcountries.WeaimtominimiseourriskasaEuropeanindependenttesthousewithhavingoursalesandope-rationsintheNetherlandsandGermanyandagentsinGreatBritain,France,Italy,IsraelandRussiaasourmainpartners.

40 RoodMicrotec

Finance

Currency and interest ratesSofar,wehavemademostofoursalesinEurope.Since95%ofourworkisinvoicedineuroswehaveonlylimitedexposuretocurrencyfluctuations.Wehedgeourcurrencyriskasmuchaspossible.Wewillcontinuetomonitorthisaspectactively,certainlyinviewoftheinternationaloperationsthatareunderdevelopment.Wepayarelativelyhighinterestrateonourshort-termloans,andwearestillmakingconsiderablerepayments.Thehighinterestratewaspartlyduetoourbalancesheetratiowithrelativelylowsolvency.Ourimprovedbalancesheetin2011hasputusinabetterpositiontoobtainloansatmorefavourableconditions.Wewillcontinuetoworkactivelytowardsimprovingthissituationassistedbyexternalconsultants.

InsuranceWehavetakenoutadequateliabilityinsuranceforproductionfaults,whichisparticularlyimportantfortheautomotiveindustry.

Internal risk management and control system

GeneralForourITsystemswehaveoptedforanintegraltandemsolutionononelocation.Tocontrolrisks,themainframesthatarepartofthetandemarephysicallyseparatedandsituatedinspecialfireproofenvironments.Allsitesareconnectedtotheintegraltandemsystem,reducingrisks.Theintroductionofthesystemisnearlycomplete.Thevariouscompanies,includingtheholdingcompanyintheNetherlands,thebranchofficesandthebusinessunits,workwiththesamesystem,whichallowsforbettermonitoringoffinancialresultspersectorandpermana-ger.Basedonwhatissummarisedabove,RoodMicrotecfeelsthatitsinternalriskmanagementandcontrolsystemsprovideareasonabledegreeofassurancethatthefinan-cialreportingdoesnotcontainanymaterialinaccuraciesandthatthissystemhasworkedadequatelyintheyearunderreview.Therearenoreasonstobelievethatthesys-temshouldnotworkadequatelyinthecurrentfinancialyear.

Strategic plansStrategicplansareconvertedintobudgetsthatareregularlycomparedtotheactualstateofaffairs.Monthlyreportsaremadethatmayoccasioncorrectiveactions.Theinternalquotingprocessissubjectedtoamonthly(quality)audit,whichinvestigatesiftheinternalguideli-neshavebeenadheredto.

Internal evaluations and external auditsAscheduleisdrawnupeveryyearforinternalevaluationsandexternalaudits.Thisscheduleisthenacteduponbyouremployeesandexternalauditors.Boththeinternalevaluationsandtheexternalauditsmayresultincorrec-tivemeasures;themanagementlettersarisingfromtheexternalauditsarediscussedbythesupervisoryboard(auditcommittee).

Audit committeeTheauditcommitteecomprisesallmembersofthesu-pervisoryboard.Thesupervisoryboardmeetsatleastfourtimesperyear.

Letter of representationEveryyear,theRoodMicrotecboardofmanagementsignsadetailedstatementconcerningfinancialreportsandinternalaudits.

Ph.M.G. NijenhuisCEO


Corporate governanceRoodMicrotecN.V.respectstheDutchcorporategovernan-cecode(hereinafterreferredtoastheCode)andconsidersitsapplicationinthelightofthecompany’sscale.Inthiscontext,RoodMicrotechasdecidedonatrend-followerposition.ThesystemoftheCodewillbeleadinginthischapter.ThechapternumberscorrespondtothechaptersoftheCode.

RoodMicrotecisveryawareoftheroleitplaysinsociety.Consequently,wejudgeourselvesbysociety’sstandards,therebyindirectlyrenderingaccountforouractivitiestoallourstakeholders:-customers-investors-employees-ourimmediatesocialenvironment.

Wealsoengagewiththesegroups,forexamplethroughseminarswithcustomers,investorsandthepress,regionalbusinessrelations,andthroughopenandtransparentdiscussionswithouremployees.RoodMicrotec’sBusinessPrinciplesandWhistleBlowerPolicymaybeinspectedonourwebsite.

Shareholdersarefreetopursuetheirowninterestswithintheboundariesofreasonablenessandfairness,yetmindfulofcorporatesocialresponsibility.Theyareinprinciplenotboundbytheinterestsofthecompanyandthebusinessitruns.Wearehappytoenterintodiscussi-onswithshareholdersiftheydonotacceptthecompany’sexplanationofwhyithasresolvedtodeviatefromanybest-practiceprovision.

I. Enforcement and application of the Code

RoodMicrotecfollowsalltheCode’sprinciplesandhasimplementedalmostallitsbestpractices.DeviationsfromtheCodewillbeexplainedintheremainderofthechapter.

II. The Board of Management

II. 1.1– 1.11 Tasks and working methodsOurCEOisonafour-yearemploymentcontract,whichhasbeenextendedtomid-2012withanoptionforanothertwo-yearextension.IncompliancewithArticle12ofthePreambletotheCode,thefour-yeartermshallalsoapplytonewboardmemberstobeappointed.TheCEOshallresignattherequestofthegeneralmeetingofshare-holders,providedthatthisconcernsabroadlysupportedwish,i.e.by25%oftheissuedcapital,ratherthantherequestofonedominantshareholder.Ifsuchapercentageisnotpresentatthemeeting,butanabsolutemajorityofthevotescast,ratherthanonedominantshareholder,isinfavourofthedismissalorofremovingthebindingnatureofthenomination,anewmeetingmaybeconvenedinwhichsucharesolutionmaybepassedwithanabsolute

majorityofvotes,provideditdoesnotconcernonedomi-nantshareholder,regardlessoftheportionoftheissuedcapitalrepresentedatthemeeting.Sucharesignationshallbeconsideredasthecompany’snoticeofterminationoftheCEO’scontract.

Thesupervisoryboardsupervisesthepolicyoftheboardofmanagement,aswellasthegeneralcourseofthecorporateaffairsandbusiness,andprovidesadvicetotheboardofmanagement.Theboardofmanagementmustkeepthesupervisoryboardinformed,consultwiththesupervisoryboardonimportantmattersandsubmitcertainimportantdecisionstothesupervisoryboardforitspriorapproval.OvertheyearsithasbecomeatraditionthatthesupervisoryboardandtheboardofmanagementdetermineRoodMicrotec’soperationalandfinancialobjec-tivesandthecompany’stargetsinconsultation.Thesameappliestothestrategyandtheframeworkconditionstobeimplemented.Thecustomofincludingthehighlightsintheannualreportwillbecontinued.

Thecompanyhasaninternalriskmanagementandcontrolsystem,whichincludes(a)ariskanalysisoftheoperationalandfinancialobjectivesofthecompany,(b)awhistle-blowerpolicy,(c)acodeofethicsforprincipalexe-cutiveandfinancialofficersandacodeofconductwhichtheboardofmanagementandemployeesmustadhereto,whichispublishedonthecompany’swebsitewww.rood-microtec.com,(d)guidelinesforthelayoutoffinancialreportsandtheprocedurestobefollowedintheprepara-tionofthereports,(e)asystemofdisclosurecontrols.

Theriskmanagementandcontrolsystemhasprovedtofunctionadequatelyandeffectively.Thiswasachievedbyspecialfocusontheoperatingandcontrolsystem.Bytheendof2005,furtherorganisationaladjustmentshadbeenimplemented,includingtheselectionof‘empowered’management.Basedonthisdecision,eachbusinessunitmanagerisnowaccountable.Wemeasuretheperfor-manceofthemanagementofhis/herbusinessunitbyusingkeyindicators.Theneedtooptimisetheorganisationwasdiscussedwiththesupervisoryboardonseveraloccasions.

WithreferencetothesectiononRiskManagement,thesaleslevelsandresultsarehighlysensitivetoupswingsanddownturnsofthemarket.However,customerstruc-turealsoplaysanimportantrole.

Theboardofmanagementisresponsibleforthestrategyandtheassociatedriskprofileandreportstothesuper-visoryboardandthegeneralmeetingofshareholdersinthiscontext.

42 RoodMicrotec

Theboardofmanagementisresponsibleforcompliancewithallapplicablelawsandregulations,thecontrolofrisksassociatedwiththecompany’sbusinessoperationsandthefinancingofthecompany.Theboardofmanage-mentreportsonthistopicanddiscussestheinternalriskmanagementandcontrolsystemswiththesupervisoryboardanditsauditcommittee.Atleastonceeveryyear,thesupervisoryboarddiscus-sesthestrategyandthemainrisksforthecompany,theresultsoftheboardofmanagement’sevaluationofthestructureandfunctioningoftheinternalriskmanage-mentandcontrolsystems,aswellasanysignificantadjustmentstothem.Thesediscussionsarereferredtointhereportofthesupervisoryboard.Intheannualreporttheboardofmanagementdescribesthemainrisksrelatedtothecompany’sstrategy.

Theboardofmanagementisresponsiblefortherelevantsocialaspectsofthecompany’sbusinessoperations.

RoodMicrotecemployeescanreportsuspectedirregulari-tieswithinthecompanywithoutjeopardisingtheirlegalposition.RoodMicrotec’swhistle-blowerpolicyenablesemployeestoreportanysuspectedirregularitiesofage-neral,operationalorfinancialnaturewithinthecompanyanditssubsidiarieswithouthavingtofearfortheirlegalposition.InsofarasthesuspectedirregularitiesdonotinvolveRoodMicrotec’smanagingdirector(s)underthearticlesofassociation,suchreportsshouldbeaddressedtothechairmanofRoodMicrotec’sboardofmanagement.However,ifthereportconcernsactionsoromissionsbyRoodMicrotec’smanagingdirector(s)underthearticlesofassociation,thewhistle-bloweristocommunicateittothechairmanofRoodMicrotec’ssupervisoryboard.

Beforeanemployeemayinvokethathis/herlegalpositionwasjeopardisedasaconsequenceofareportasdescribedabove,thechairmanoftheboardofmanagement(whenthereportdoesnotinvolvesuspicionsagainstRoodMicro-tec’smanagingdirector(s)underthearticlesofassociati-on)orthechairmanofthesupervisoryboard(ifthereportinvolvessuspicionsagainstRoodMicrotec’smanagingdirector(s)underthearticlesofassociation)mustissueanassessmentinwriting.Thisassessmentdocumentmustbeprovidedwithin14daysaftertherelevantrequest.

NomembersofRoodMicrotec’sboardofmanagementholdthepostofboardmemberinotherlistedcompanies.TheemploymentcontractwithboardmembersstipulatesthatacceptingotherpostsinabusinessenvironmentissubjecttoapprovalbyRoodMicrotec’ssupervisoryboard.Insofarasthishasbeenapplicable,thecompanyhascom-pliedwiththisprovision.

Intheeventofatakeover,theboardofmanagementandthesupervisoryboardarejointlyresponsibleforevalua-tingtheoffermadeandformakingrecommendationstotheshareholders.Ifatakeoverofferisunderpreparation,itistheresponsibilityoftheboardofmanagementtoinvolvethesupervisoryboardinthetakeoverprocessclo-

selyandinatimelymanner.Itisappropriatetodiscussinadvancetheroleofthesupervisoryboardinanytakeoverprocess.Theboardofmanagementwilldiscussrequestsfromanycompetingbidderswiththesupervisoryboardwithoutdelay.

Shareholdersmaymakeuseoftheirrighttoplaceissuesontheagendaofthegeneralmeetingofshareholders.Ifitconcernsamatterthatmayresultinachangeofstrategy,forexamplethedismissalofmanagingdirectorsorsupervisorydirectors,thesupervisoryboardwillsetareasonabletermtorespondtoit(the‘responsetime’).Theresponsetimemaynotexceed180days,calculatedfromthetimewhenthesupervisoryboardwasinformedoftheintentiontoplaceanitemontheagendauptothedayonwhichtheshareholders’meetingisheld.Shareholdersmustrespectthisresponsetime.Thesupervisoryboardwillusethistimeforfurtherconsultationandconstructivediscussions,inanycasewiththerelevantshareholder(s).Itistheresponsibilityofthesupervisoryboardtomonitorthewayinwhichtheboardofmanagementusestheres-ponsetime.Thesupervisoryboardmayusetheresponsetimeonlyonceinrelationtothesamematter.Settingaresponsetimeisnotpossibleinasituationinwhichapublictakeoverofferissuccessfulandtheacquiringpartyhas75%ormoreofthesharecapital.

II. 2.1 – 2.14 RemunerationOptionsonsharesarepartofthecompany’sremunera-tioncomponents.Grantingtheseoptionsissubjecttoachievingtargetsbasedonthecompany’sshort-termandlong-termstrategicplans,strategicaddedvalue(notfinancial)aswellasthemarketsituationingeneral.Theremunerationstructure,inparticularitsvariablecom-ponent,doesnotpromotetakingrisksthatconflictwiththesetstrategy.Thevariablepartisdeterminedtakingintoaccounttherisksthatvariableremunerationentailsforthecompany.Priortosettingtheremunerationpolicyandthedetermi-ningtheremunerationoftheindividualdirectors,thesu-pervisoryboardwillanalysethepossibleoutcomesofthevariableremunerationcomponentsandtheconsequencesthereoffortheremunerationforthedirector.Thesupervisoryboarddeterminesthelevelandthestructureofthedirectors’remunerationpartiallybasedonthescenariosanalysed,takingintoaccountthebalanceofremunerationswithinthecompany.Theoptionsgrantedarestatedinthecompany’sannualaccounts.

Regardingownershipandtransactionsofsharesbyboardmembers,otherthanthoseissuedbythecompanyitself,thesupervisoryboardhasresolvedtodeviatefromtheCode.Boardmembersarenotpermittedtoholddirectorindirectinterestsamountingtomorethan5%inotherlistedcompaniesorcompaniesinthesemiconductorindustry,unlessthesupervisoryboardhasgrantedspecificpermission.Furthermore,boardmembersmustreportchangesinshareholdingsinotherlistedorsemiconductorcompaniestothechairmanofthesupervisoryboard.


TheexistingemploymentcontractwiththeCEOincludesacompensationclauseincaseofterminationofemploy-ment.Thisdismissalpaymentamountstoamaximumofoneyear’ssalary.NopersonalloansorguaranteeshavebeenprovidedtotheCEO.TheremunerationoftheCEOconsistsofafixedsalaryplusavariablepartthatwillbepaidoutinoptions.Thereisabalancebetweenafixedandvariablepartofthecom-pensation.Thecalculationistransparent.Asstatedabove,thegrantingofoptionsissubjecttotheachievementoftargetssetbythesupervisoryboardinthecontextofthecompany’sstrategicplan.TheachievementofthetargetsbytheCEOwillbeevaluatedeverysixmonthsandnewtargetswillbeset,takingsignificantchangesincircumstancessuchasmarketdevelopmentsintoaccount.ThetargetsfortheCEOarenotdescribedintheannualaccountsduetocompetitivereasons.Companyobjectivesaredescribedinthisreport.TheCEOhasacontractendinginmid-2012withanoptionforanadditionaltwoyears.Theemploymentmaybeter-minatedbygivingsixmonths’noticeinwritingbeforetheendofeachcalendarmonth.RoodMicroteccomplieswithprovisionII.2.7oftheCode,whichdeterminesinteraliathattheexercisepriceoftheshareoptionsandothercon-ditionsmaybeadjustedduringthetermofthecontract.

TheCEO’semploymentcontractcontainsnoformalpensionplan.However,RoodMicrotecpayshimapensioncontributionof10%ofhissalary.Therearenoearlyretire-mentprovisionsfortheCEO.

Theremunerationofthemanagersofthecompanycomprisesafixedsalaryandasubstantialvariablepartofthefixedsalary.Thevariablepartdependspredominantlyonthefinancialresultandsalestargetsoftheentirecom-pany.Ifthefinancialandsalestargetsoftheentirecom-panyhavebeenachieved,thevariablepartwilldependonpersonalobjectives.

II. 3.1 – 3.4 Conflicting interestsAccordingtoArticle22ofRoodMicrotec’sarticlesofasso-ciation,thecompanyshallberepresentedbythechair-manofthesupervisoryboardintheeventofaconflictofinterestinvolvingamanagingdirector.ThecompanycomplieswithallprovisionsoftheCoderegardingref-rainingfromcompetingwiththecompany,acceptingorrequestinggiftsforthemanagingdirectorand/orhis/herimmediatefamily,providingunjustifiablebenefitschargedtothecompany,themanagingdirectorand/orhis/herimmediatefamilyusingbusinessopportunitiesthatareintendedforthecompany,andtheobligationtoreportapotentialconflictofinteresttothechairmanofthesupervisoryboard.Furthermore,themanagingdirectormaynottakepartinthediscussionoftheeventinwhichhe/shehasamajorconflictofinterest.Moreover,alltransactionsconcerningaconflictofinterestmustbeapprovedbythesupervisoryboardandwillbereportedintheannualreport.

III. The supervisory board

III. 1.1 – 1.9 Task and working methodsSomeyearsago,thesupervisoryboardpreparedasetofrulesforitsownfunctioning,whichareavailableforinspectionbyshareholdersandstakeholdersatthecompany’soffices.Theserulesincluderegulationsfortheinteractionwiththeboardofmanagement.Thearticlesofassociationofthecompanycontainregulationsregardingtheinteractionwiththeshareholders.Thereportofthesupervisoryboard,whichisincludedinthisannualreport,providesspecificdetailsregardingthemembersofthesupervisoryboardasrequiredbytheCode.

Intheperformanceofitsduties,thesupervisoryboardfocusesontheinterestofthecompanyandthebusinessassociatedwithit,andinthatcontextweighstherelevantinterestsofthestakeholdersofthecompany.Thesupervi-soryboardalsoconsiderstherelevantsocialaspectsofthecompany’sbusiness.Thesupervisoryboard’ssupervisionoftheboardofmanagementincludestherelevantsocialaspectsofthecompany’sbusiness.Theboardofmanagementmustinformtheshareholderspromptlyofthepoliciesitintendstopursue.Thesupervi-soryboard’sdutytosupervisetheboardofmanagementwillbeextendedtosupervisionoftherelationshipwiththeshareholders.

III. 2.1 – 2.3 IndependenceRoodMicroteccomplieswiththeCode,whichrecommendsthatthesupervisoryboardshouldnotincludemorethanonenon-independentmember.

III. 3.1 – 3.6 Expertise and compositionTheregulationsforthesupervisoryboardincludingprofileisavailableonthecompany’swebsitewww.roodmicrotec.com

RoodMicroteccomplieswiththeCode’srequirementofhavingafinancialexpertonthesupervisoryboardinthepersonofJ.H.P.M.Stolker.

Allnewmembersofthesupervisoryboardarerequiredtoattendaninductionprogram,whichaddressesgeneralfinancialandlegalissues,thefinancialreportingofthecompany,thespecificaspectsofthecompany’sactivitiesandtheresponsibilitiesofasupervisorydirector.Currentsupervisorydirectorswillannuallyevaluatetheirneedfortraining.Thecompanywillplayafacilitatingroleinthis.

RoodMicrotec’sarticlesofassociationstipulatethatamemberofthesupervisoryboardshallbeappointedforamaximumtermoffouryears,andbere-appointednomorethanthreetimes.Theresignationrotaissetoutintheannualaccounts.Westriveforamixedcompositionintermsofsexandage.However,ourfirstselectioncriterionissuitablequalificati-ons,beforeissueslikesexandageareconsidered.

44 RoodMicrotec

III. 4.1 – 4.3 Role of the chairman of the supervisory board and the company secretaryRoodMicroteccomplieswiththeseprovisionsoftheCode.Thecompanyhasappointedacompanysecretary,whoensurestheusageofcertainproceduresandensuresthatthecompanyoperatesinaccordancewithlegalobligati-onsandthearticlesofassociation.

Thevice-chairmanofthesupervisoryboard,or,ifnosuchpersonhasbeendesignated,oneoftheothersupervi-sorydirectors,willreplacethechairmanasrequired.Thevice-chairmanwillalsoserveascontactforindividualsupervisorydirectorsandmanagingdirectorsinmattersregardingthefunctioningofthechairman(newpointintheCode).

III. 5.1 – 5.13 Composition and the role of three core com-mittees amongst the supervisory boardThecompanyintendstohaveasupervisoryboardcom-prisingtwoorthreemembers.ThismeansthatRoodMi-crotecisconsideringestablisharemunerationandauditcommittee.ThecompanywillthenapplytherelevantprovisionsoftheCode.Presently,theresponsibilitiesofthecorecommitteesarecarriedoutbythefullsupervisoryboard.

III. 6.1 – 6.7 Conflict of interestAsupervisorydirectorwhohasaconflictofinterestasdescribedinprovisionIII.6.1oftheCodeshallreportthistothechairmanofthesupervisoryboardandthesuper-visorydirectorwillnottakepartinanydiscussionsofthematterinwhichthesupervisorydirectorhasaconflictofinterest.Moreover,alltransactionsinvolvingaconflictofinterestmustbeapprovedbythesupervisoryboardandwillbereportedintheannualreport.

Ifrelevant,thecompanyshallcomplywiththeprovision6.4concerningtransactionsbetweenthecompanyandnaturalpersonsorlegalentitiesholding10%ormoreofthecompany’ssharecapital.

Regulationsondealingwith(potentially)conflictinginterestsinvolvingtheCEO,managingdirectors,boardmembers,includingsupervisoryboardmembers,andtheexternalauditor,willbeextendedwiththerulesofthesupervisoryboard.

ThecompanysharestheTabaksblatCommittee’sviewsonthetasksandauthorityofadelegatedmemberofthesupervisoryboard.

III. 7.1 – 7.4 RemunerationTheremunerationofthesupervisoryboardissubjecttoapprovalfromthegeneralmeetingofshareholders(seealsoArticle24,paragraph4ofthearticlesofassociation).Regardingtheremunerationofthesupervisoryboard,nosharesand/oroptionsonshareswillbegrantedaspartoftheremuneration.Theprofileofthesupervisoryboard,tobepublishedonthecompanywebsite,willbeextendedwiththerelevantarticlesoftheCode.

IndeviationfromtheCode,ithasbeendeterminedthatnomemberofthesupervisoryboardwillbepermittedtoholddirectorindirectinterestsamountingtomorethan5%inthesharecapitalofotherlistedcompaniesorcompaniesinthesemiconductorindustry.Furthermore,supervisorydirectorsmustreportchangesinsharehol-dingsinotherlistedorsemiconductorcompaniestothechairmanofthesupervisoryboard.

RoodMicrotechasnotprovidedanypersonalloansorguaranteestomembersofthesupervisoryboard.

IV. The (general meeting of) shareholders

IV. 1.1 – 1.8 Scope of authorityThecompanycomplieswiththeCoderegardingthedecision-makingofthegeneralmeetingofshareholdersonthefollowingitems:• CompliancewiththeCodeisaccountedforinthe annualreportinthecontextofthedischargeofthe boardofmanagementandthesupervisoryboard. Thechairmanofthegeneralmeetingofshareholdersis responsibleforanorderlymeeting,soastofacilitate meaningfuldiscussions.• Thevotingrightsonpreferenceshares.• Thepublicstatementofandmotivationfortheboard’s pointofviewconcerningapublished,seriousprivate offeronacompanydivisionorparticipationinthe companywithavalueexceedingthelimitstipulatedin Book2,Section107(a)oftheDutchCivilCode,first paragraph,subc.• Theallocationanddividendpolicy,thedividend distributionproposal,andgrantingdischargetothe CEO,managingdirectorsandsupervisorydirectorsto beseparateitemsontheagendaofthegeneral meetingofshareholders.• Settingaregistrationdateforexercisingvotingand attendancerights.

IV. 2.1 – 2.8 Depositary receipts for sharesSincenodepositaryreceiptsforshareshavebeenissued,thispartoftheCodeisnotapplicabletoRoodMicrotec.

IV. 3.1 – 3.13 Information provision / logistics of the gene-ral meeting of shareholdersRoodMicroteccomplieswiththebest-practiceprovisionsconcerninginformingshareholdersandotherpartiesinthefinancialmarketsimultaneouslyandequallyonissuesthatmayaffecttheshareprice.However,basedonacost/benefitanalysis,thecompanyhasdecidedagainstspendingmoneyontechnologyforattendingmeetingsremotely.

Theagendaofthegeneralmeetingshalllisttheitemsfordiscussionandthevotingitems.

Thecompanywillcontinuetoprovidethegeneralmee-tingofshareholderswithallrelevantinformationrequiredtoproperlyexerciseitsrightsandauthorities,unlessama-terialinterestpreventsitfromdisclosingcertaininforma-


tion.IncompliancewiththeCodeRoodMicrotecpublishespresentationstoanalystsonitswebsiteaftertheevent.Ifnecessary,thecompanywillaskfortradeinRoodMicrotecsharestobesuspendedduringsuchpresentations.

RoodMicrotecwillpublishormakeavailableallinforma-tionpursuanttocorporatelawandsecuritieslegislation.

Motionstobeapprovedorauthorisedbythegeneralmee-tingwillbeexplainedinwriting.Initsexplanation,theboardofmanagementwilladdressallfactsandcircums-tancesrelevantfortherequestedapprovalorauthorisa-tion.Motionstobeapprovedorauthorisedbythegeneralmeetingwillbeexplainedinwriting.

Materialchangestothearticlesofassociationofthecompanyandnominationsformanagingdirectorsandsupervisorydirectorswillbeputtothegeneralmeetingseparately.

Thecompanyoffersshareholdersandotherpartieswithvotingrightstheoptionofgivingavotingproxyorvotinginstructionstoanindependentthirdpartypriortothegeneralmeeting.

Thecompanyhasnotformulatedpoliciesconcerningbi-lateralcontactswithshareholdersandthereforedoesnotpublishanysuchpolicyonitswebsite.

Furthermore,thecompanyshallatfirstrequestmaketheminutesofanygeneralmeetingofshareholdersavailabletoallshareholdersnolaterthanthreemonthsafterthedateoftherelevantmeeting.Shareholdersthenhavethreemonthstosubmittheirreactionstotheminutes.Subsequently,theminuteswillbesignedbythechairmanofthemeetingandthepersonwhopreparedtheminutes,inaccordancewithArticle31,paragraph1ofRoodMicro-tec’sarticlesofassociation.

Thecompanyhasnotputinplaceanyprotectivecon-structionagainsttakeovers.ThereasonforthisisthatforarelativelysmallcompanylikeRoodMicrotec,itwouldnotbeunfavourableeitherfortheshareholdersortheoperationalentitytobepartofalargerorganisationinthesemiconductorindustry.

IV. 4.1 – 4.6 Responsibility of institutional investorsRoodMicroteccurrentlydoesnothaveanyinstitutionalinvestors.Ifthisshouldchangeinthefuture,RoodMi-crotecwillasktheinstitutionalinvestorstoapplythesebest-practiceprovisionsoftheCode.However,RoodMicro-tecwillnotinsistoncompliance,sinceitdoesnotwishtorestrictpotentialinstitutionalinvestors.

Shareholdersmustbehaveinaccordancewithstandardsofreasonablenessandfairness.Thefollowingguidelinesapplytoallshareholdersincludinginstitutionalinvestors:- awillingnesstoengageindiscussion;- therighttosetagendaitemstobeexercisedin consultationwiththeboardofmanagement;

- votingatone’sdiscretion,takinganindependentview ofanyvotingrecommendations;- agendaitemsmustbeexplainedinthemeeting.

V. The audit of financial reports and the position of the internal audit function and the external auditor

V. 1.1 – 1.3 Financial reportingRoodMicrotec’ssupervisoryboardmonitorsthereportingandpublicationoftheannualreport,theannualaccountsandotherfinancialstatementsrequiredbyinternalpro-cedures.

Theboardofmanagementbearsresponsibilityfortheinternalproceduresthatensuretheadequacy,accuracyandreliabilityoftheexternalfinancialreporting.

V. 2.1 – 1.3 Role, appointment, remuneration and assess-ment of the external auditor’s performanceTheexternalauditorwillattendthegeneralmeetingofshareholderstoanswerquestionsregardingtheaccuracyoftheannualaccounts.Thecompany’sboardofmanage-mentreportsannuallytothesupervisoryboardondeve-lopmentsintherelationshipwiththeexternalauditor.Accordingtothecompany’sarticlesofassociation(Article25,paragraph2),theauthoritytoappointtheexternalauditorlieswiththegeneralmeetingofshareholders.

V. 3.1 – 3.3 Internal audit functionRoodMicrotecdoesnothaveaninternalauditor.

Anewbest-practiceprovisionhighlightstheneedforandimportanceoftheinternalauditfunction.TheCommitteeholdsthateverylistedcompanyshouldinprinciplehaveaninternalauditorinaccordancewithbest-practiceprovisionV.3.1.Theauditcommittee/thesupervisoryboardwillannuallyassesstheneedforaninternalauditor.Theauditcommit-tee/thesupervisoryboardwillmakerecommendationstothemanagementboard,whichwillberecordedinthereportofthesupervisoryboard.Ifaninternalauditorisappointed,thisofficerwillbeac-countabletotheboardofmanagement.

V. 4.1 – 4.3 Relation and communication with the external auditor and the company’s departments Theexternalauditorwillatleastonceayearmeetwiththesupervisoryboardtodiscusstheexternalauditor’sreportandtheannualaccounts.Furthermore,theexternalauditorwillreceiveallfinancialinformationhe/sherequirestoper-formhis/hertasks.Theexternalauditorannuallysubmitsamanagementlettertotheboardofmanagementandthesupervisoryboard,whichisdiscussedinajointmeetingoftheboardofmanagementandthesupervisoryboard.

Ph.M.G. NijenhuisCEOZwolle, 23 February 2012

46 RoodMicrotec

Management statementCorporate Governance statement

Thisisastatementconcerningcorporategovernanceasreferredtoinarticle2aofthedecreeonadditionalrequirementsforannualreports(Vaststellingsbesluitnaderevoorschrifteninhoudjaarverslag)effectiveasof1January2010(the‘Decree’).ThisstatementformspartofRoodMicrotec’sAnnualReport2011(includedinthechapteronCorporategovernance),whichisavailableonRoodMicrotec’swebsite:www.roodmicrotec.com.Theinformationrequiredtobeincludedinthiscorporategovernancestatementasdescribedinarticles3,3aand3boftheDecreecanbefoundinthefollowingchapters,sectionsandpagesofRoodMicrotec’sAnnualReport2011andaredeemedtobeincludedandrepeatedinthisstatement:• theinformationconcerningcompliancewiththeDutchCorporateGovernanceCode,asrequiredbyarticle3ofthe Decree,canbefoundinthechapteron‘Corporategovernance’;• theinformationconcerningRoodMicrotec’smainfeaturesoftheinternalriskmanagementandcontrolsystemsrelating tothefinancialreportingprocess,asrequiredbyarticle3asubaoftheDecree,canbefoundinthechapteron‘Risk management’;• theinformationregardingthefunctioningofRoodMicrotec’sgeneralmeeting,andtheauthorityandrightsof RoodMicrotec’sshareholdersandholdersofcertificatesofshares,asrequiredbyarticle3asubboftheDecree,canbe foundinthechapteron‘Corporategovernance’;• theinformationregardingthecompositionandfunctioningofRoodMicrotec’sBoardofManagement,theSupervisory BoardanditsCommittees,asrequiredbyarticle3asubcoftheDecree,canbefoundintherelevantsectionsofthe chapteron‘CorporateGovernance’andthe‘ReportoftheSupervisoryBoard’;• theinformationconcerningtheinclusionoftheinformationrequiredbythedecreeArticle10EUTakeoverDirective,as requiredbyarticle3boftheDecree,canbefoundinthechapteron‘CorporateGovernance’.

True and fair view statement

Thisstatementisanintegralpartoftheannualreportdatedon23February2012.ThisstatementisbasedonArticle5:25cClause2subCoftheFinancialSupervisionAct.Thestatementsfollowingthislawareobligedasanewrulingfortheannualreport2011.Ouropinionoftheannualaccountsisthatitgivesatrueandfairviewoftheassets,liabilities,financialpositionandtheresultofRoodMicrotecN.V.andthecompaniesincludedintheconsolidation.Theannualreportgivesatrueandfairviewofthesituationonbalancesheetdateandthedevelopmentsduringthefinan-cialyearofRoodMicrotecN.V.andthegroupcompaniesforwhichthefinancialinformationisrecognisedinitsfinancialstatements.ThemostimportantrisksconfrontingRoodMicrotecN.V.aredescribedintheannualreport.ThemembersoftheboardofmanagementhavesignedtheannualreportandfinancialstatementsinfulfilmentoftheirlegalobligationsarisingfromArticle5:25cClause2subCoftheFinancialSupervisionAct.

Annual Accounts 2011

ROODMICROTEC N.V.


48 RoodMicrotec

Consolidated income statement

(xEUR1,000) Note Yearended31December 2011 2010

Netsales 1 15,717 15,563Costofsales 2 -3,375 -3,321GROSS MARGIN 12,342 12,242 Personnelexpenses 3 7,215 7,073Otheroperatingexpenses 4 3,262 2,808OPERATING EXPENSES 10,477 9,881

EBITDA 1,865 2,361 Depreciationandamortisation 5 1,156 1,628

EBIT 709 733 Financialexpenses 6 -301 -526

RESULT BEFORE TAXATION 408 207 Taxation 7 180 241

NET RESULT 588 448 Earnings per share for profit attributable to the equity holders of the company during the year -basic 16 0.02 0.01-diluted 16 0.02 0.01

Consolidated statement of comprehensive income

(xEUR1,000) Yearended31December 2011 2010

Incomefortheyear 588 448Revaluationbuildings 108 -Mezzaninecompensation -233 -

Total comprehensive income for the year 463 448


Consolidated balance sheet(beforeappropriationofnetresult)

(xEUR1,000) Note 31December 31December 2011 2010

ASSETS Property,plantandequipment 8 5,732 5,710Intangibleassets 9 1,783 1,811Deferredincometaxassets 10 558 588Financialassets 11 1,720 1,665Non-current assets 9,793 9,774 Inventories 12 402 654Tradeandotherreceivables 13 2,431 3,040Cashandcashequivalents 14 345 258Current assets 3,178 3,952

TOTAL ASSETS 12,971 13,726 EQUITY AND LIABILITIES Issuedcapital 15 3,935 3,935Sharepremium 15 17,723 17,695Revaluationreserve 15 1,885 1,552Retainedearnings 15 -19,399 -19,529Mezzaninecapital 15 1,994 1,994Equity, attributable to shareholders 6,138 5,647 Interest-bearingloansandborrowings 18 1,077 1,647Deferredtaxliabilities 10 114 326Retirementbenefitobligations 19 1,633 1,585Non-current liabilities 2,824 3,558 Bankoverdrafts 14 1,115 603Currentportionoflong-termdebt 18 839 1,342Tradeaccountandotherpayables 20 1,846 2,443Currentincometaxliabilities 209 133Current liabilities 4,009 4,521

TOTAL EQUITY AND LIABILITIES 12,971 13,726

50 RoodMicrotec

Consolidated cash flow statement

Yearended31December(xEUR1,000) Notes 2011 2010

EBITDA 1,865 2,361Adjustmentsfor: - Sharebasedpayments 28 27- ReceivedfromPensionfund“Unterstützungskasse” forpensioners 199 -- Paymentstopensioners -199 -- Increase/decreasepensionprovision 48 212- Accruedinterest -41 -80- Otheradjustments -9 -9Changesinworkingcapital - Inventories 252 -65- Tradeandotherreceivables 609 -728- Changesintradeandothercurrentliabilities -551 417

Cash flow from operating activities 2,201 2,135Interestpaid 6 -262 -446Incometaxpaid - -

Net cash generated from operating activities 1,939 1,689 Cash flow from investing activities Investmentsinproperty,plantandequipment 8 -1,024 -681Disposalofground 21 -Investmentsinpensionassets 19 - -1,994Investment/receivedinfinancialassets 11 -55 138

Net cash flow from investing activities -1,058 -2,537 Cash flow from financing activities Proceedsfromissuanceofordinarynewshares 17 - 63Proceedsfromissuanceofmezzaninecapital 15 - 1,994Paymentofcompensationmezzaninecapital -233 -Proceedsfromborrowings 215 1,000Repaymentofborrowings -1,288 -2,138

Net cash flow from financing activities -1,306 919

Net cash flow -425 71

Cash-/-Bankoverdraftsatbeginningofyear 14 -345 -416Cash-/-Bankoverdraftsatendofyear 14 -770 -345

Net cash flow -425 71


Consolidated statement of changes in equity

(xEUR1,000) Number Issued Share Revaluation Retained Mezzanine Equity, ofshares capital premium reserve earnings capital attributable x1,000 to shareholders

Balance at 1 January 2010 35,196 3,872 17,668 1,647 -20,072 - 3,115Recognisedprofitfortheyear2010 - - - - 448 - 448Depreciationbuildings - - - -95 95 - -Employeeshareoptionsexercised 573 63 - - - - 63Valueofemployeeoptionsgranted - - 27 - - - 27Mezzaninecapital - - - - - 1,994 1,994Balance at 31 December 2010 35,769 3,935 17,695 1,552 -19,529 1,994 5,647 Balance at 1 January 2011 35,769 3,935 17,695 1,552 -19,529 1,994 5,647Recognisedprofitfortheyear2011 - - - - 588 - 588Revaluation - - - 358 -250 108Depreciationbuildings - - - -25 25 - -Valueofemployeeoptionsgranted - - 28 - - - 28Mezzaninecapitalcompensation - - - - -233 233 -Mezzaninecapitalcompensationdistribution - - - - - -233 -233Balance at 31 December 2011 35,769 3,935 17,723 1,885 -19,399 1,994 6,138

52 RoodMicrotec

Notes to the consolidated financial statementsGeneral informationRoodMicrotecN.V.isapubliclimitedliabilitycompanywithitsregisteredofficeinZwolle,theNetherlands.Theconsolida-tedfinancialstatementsofthecompanyfortheyearended31December2011comprisesthecompanyanditssubsidiaries( jointlyreferredtoasthe‘Group’).TheGroupincludesthewholly-ownedsubsidiaries:

RoodMicrotecNördlingenGmbH+Co.KG(Nördlingen,Germany),RoodMicrotecHoldingGmbH(Nördlingen,Germany),RoodMicrotecBeteiligungsGmbH(Nördlingen,Germany),RoodMicrotecStuttgartGmbH(Stuttgart,Germany),RoodMicrotecDresdenGmbH(Dresden,Germany),RoodMicrotecInternationalB.V.(Zwolle,theNetherlands).

The2011financialstatementswerepreparedbytheboardofmanagementandreleasedforpublicationon23February2012.The2011financialstatementswereadoptedbythesupervisoryboardon23February2012andwillbesubmittedforadop-tiontotheannualgeneralmeetingofshareholderson26April2012.

Summary of significant accounting policiesTheprincipalaccountingpoliciesusedinthepreparationoftheseconsolidatedfinancialstatementsaresetoutbelow.Thesepolicieshavebeenconsistentlyappliedtoalltheyearspresented,unlessotherwisestated.

Basis of preparationTheconsolidatedfinancialstatementshavebeenpreparedinaccordancewithInternationalFinancialReportingStandards(IFRSasendorsedbytheEuropeanUnion)anditsinterpretationsasadoptedbytheInternationalAccountingStandardsBoard(IASB).Thefinancialstatementshavebeenpreparedonhistoricalcostbasis,exceptthatthefollowingassetsandliabilitiesarestatedattheirfairvalue:landandbuildings,andtheretirementbenefitsobligationresultingfromdefinedbenefitpensionplans.

ThepreparationofthefinancialstatementsinaccordancewithIFRSrequiresmanagementtomakejudgements,estimatesandassumptionsthataffecttheapplicationofpoliciesandreportedamountsofassetsandliabilities,incomeandexpenses.Theestimatesandassumptionsarebasedonhistoricalexperienceandvariousfactorsthatarebelievedtobereasonableunderthecircumstances,theresultofwhichformthebasisformakingjudgmentsaboutthecarryingvaluesoftheassetsandliabilitiesthatarenotreadilyapparentfromothersources.Actualresultsmaydifferfromtheseestimates.Theesti-matesandassumptionsarereviewedonanongoingbasis.

Revisionsofaccountingestimatesarerecognisedintheperiodinwhichtheestimateisrevisediftherevisionaffectsonlythatperiodorintheperiodoftherevisionandfutureperiodsiftherevisionaffectsbothcurrentandfutureperiods.

Application of new and revised IFRS/IAS standardsTheGroupappliedallnewandamendedstandardsandinterpretations,assetbytheIASBandadoptedbytheEuropeanUnion,thatbecameapplicablefortheperiodstartedon1January2011.

TheimprovementstoIAS1clarifythatanentitymaychoosetodiscloseananalysisofothercomprehensiveincomebyiteminthestatementofchangesinequityorinthenotestothefinancialstatements.Inthecurrentyear,foreachcomponentofequity,theGrouphaschosentopresentsuchananalysisintheconsolidatedstatementofchangesinequity.Suchamend-mentshavebeenappliedretrospectively,andhencethedisclosuresintheseconsolidatedfinancialstatementshavebeenmodifiedtoreflectthechange.

TheamendmentsinIAS32(Financialinstruments:Presentation’,onclassificationofrightissues),IAS24(‘RelatedPartyDis-closures’),IFRIC14(‘Pre-paymentsofaminimumfundingrequirement(IAS19)’andIFRIC19(new)(‘Extinguishingdebtswithequityinstruments’)didnothaveamaterialimpactonthefinancialstatements.


TheGrouphasnotappliedthenewandrevisedIFRS,listedinthetablebelow,thathavebeenissuedbutarenotyeteffec-tiveand/orapprovedbytheEuropeanUnion.Noneofthesenewandrevisedstandardsisexpectedtohaveasignificantim-pactontheconsolidatedfinancialstatementsoftheGroup,exceptforrevisedIAS19.RevisedIAS19couldhaveasignificantimpactontheconsolidatedfinancialstatementssinceitwilldepartfromthecorridorapproachascurrentlyappliedbytheGroupinaccountingforactuarialgainsandlosses.RoodMicrotecN.V.iscurrentlyexaminingtheimpactofthesechangesindetail.

Newandrevisedstandards: Effectiveforannual periodsbeginning onorafter

AmendmentstoIFRS7-Disclosures–TransfersofFinancialAssets 1July2011

AmendmentstoIAS12-DeferredTax–RecoveryofUnderlyingAssets 1January2012

AmendmentstoIAS1-PresentationofItemsofOtherComprehensiveIncome 1July2012

IFRS9-FinancialInstruments 1January2013

IFRS10-ConsolidatedFinancialStatements 1January2013

IFRS11-JointArrangements 1January2013

IFRS12-DisclosureofInterestsinOtherEntities 1January2013

IFRS13-FairValueMeasurement 1January2013

IAS19(asrevisedin2011)-EmployeeBenefits 1January2013

IAS27(asrevisedin2011)-SeparateFinancialStatements 1January2013

IAS28(asrevisedin2011)-InvestmentsinAssociatesandJointVentures 1January2013

54 RoodMicrotec

Basis of consolidation SubsidiariesareallentitiesinwhichtheGrouphasthepowertocontrolthefinancialandoperatingpolicies,whicharegenerallyassociatedwithashareholdingofmorethanonehalfofthevotingrights.Theexistenceandeffectofpotentialvo-tingrightsthatarecurrentlyexercisableorconvertibleareconsideredwhenassessingwhethertheGroupcontrolsanotherentity.SubsidiariesarefullyconsolidatedfromthedateonwhichcontrolistransferredtotheGroup.Theyaredeconsolida-tedfromthedateonwhichcontrolceases.

Intercompanytransactions,balancesandunrealisedgainsandtransactionsbetweenGroupcompaniesareeliminated.Un-realisedlossesarealsoeliminated,butareconsideredanimpairmentindicatoroftheassettransferred.AccountingpoliciesofsubsidiarieshavebeenchangedwherenecessarytoensureconsistencywiththepoliciesadoptedbytheGroup.

Foreign currency translation Functional and presentation currencyItemsincludedinthefinancialstatementsofeachoftheGroup’sentitiesaremeasuredusingthecurrencyoftheprimaryeconomicenvironmentinwhichtheentityoperates(‘thefunctionalcurrency’).Theconsolidatedfinancialstatementsarepresentedineuros,whichisthecompany’sfunctionalandpresentationcurrency.

Transaction and balancesForeigncurrencytransactionsaretranslatedintothefunctionalcurrencyusingtheexchangeratesprevailingatthedatesofthetransactions.Foreignexchangegainsandlossesresultingfromthesettlementofsuchtransactionsandfromthetranslationsatyear-endexchangeratesofmonetaryassetsandliabilitiesdenominatedinforeigncurrenciesarerecognisedintheincomestatement.

Property, plant and equipmentAssets in ownershipProperty,plantandequipmentarestatedatcost,exceptforlandandbuildings,whicharecarriedatfairvalue,basedonperiodicvaluationsbyanexternalindependentvaluator,lesssubsequentdepreciation.Thecostofself-constructedassetsincludesthecostofmaterials,directlabourandanappropriateproportionofdirectlyallocatedoverheads.Propertythatisunderconstructionorbeingdevelopedforfutureuseisclassifiedasproperty,plantandequipmentandstatedatcostuntilconstructionordevelopmentarecomplete,atwhichtimeitisclassifiedasproperty,plantorequipment.Whereanitemofproperty,plantandequipmentcomprisesmajorcomponentshavingdifferentusefullives,thesecomponentsareaccountedforasseparateitemsofproperty,plantandequipment.

Increasesinthecarryingamountarisingfromrevaluationoflandandbuildingsarecreditedtootherreservesinequity.Decreasesthatoffsetpreviousincreasesofthesameassetarechargedagainstotherreservesdirectlyinequity;allotherdecreasesarechargedtotheincomestatement.Eachyearthedifferencebetweendepreciationbasedontherevaluatedcar-ryingamountoftheassetchargedtotheincomestatementanddepreciationbasedontheasset’soriginalcostistransfer-redfromotherreservestoretainedearnings.

Lease assetsLeasesinwhichtheGroupsubstantiallyassumesalltherisksandrewardsofownershipareclassifiedasfinanceleases.Plantandequipmentacquiredbymeansofafinanceleasearestatedatanamountequaltotheloweroftheirfairvalueandthepresentvalueoftheminimumleasepaymentsattheinceptionofthelease,lessaccumulateddepreciationandimpair-mentlosses.

Subsequent costTheGrouprecognisesinthecarryingamountofanitemofproperty,plantandequipmentthecostofreplacingpartofsuchanitemwhenthatcostisincurredifitisprobablethatthefutureeconomicbenefitsembodiedintheitemwillflowtotheGroupandthecostoftheitemcanbemeasuredreliably.Allothercostsarerecognisedintheincomestatementasanexpenseasincurred.


DepreciationDepreciationonassetsiscalculatedusingthestraight-linemethodtoallocatethecostofeachassettoitsresidualvalueoveritsestimatedusefullife.Landisnotdepreciated.Theusefuleconomicallifeofthedifferentitemsofthe(in-)tangibleassetsissetoutbelow:

Category YearsBuildings 30Machineryandequipment 2-10Otherfixedassets 4-10Intangibleassets 3-5

Theasset’sresidualvalueandusefullifearereviewed,andadjustedifappropriate,ateachbalancesheetdate.

Anasset’scarryingamountiswrittendownimmediatelytoitsrecoverableamountiftheasset’scarryingamountisgreaterthanitsestimatedrecoverableamount.

Intangible assets

Internally generated assetsExpenditureonactivitiesundertakenwiththeprospectofgainingnewscientificortechnicalknowledgeandunderstandingisrecognisedasanexpenseintheperiodinwhichitisincurred.AninternallygeneratedintangibleassetarisingfromtheGroup’sdevelopmentisrecognisedonlyifallofthefollowingconditionsaremet:• anassetiscreatedthatcanbeidentified(suchassoftwareandnewprocesses);• itisprobablethattheassetcreatedwillgeneratefutureeconomicbenefits;• thedevelopmentcostoftheassetcanbemeasuredreliably.

GoodwillGoodwillrepresentstheexcessofthecostofanacquisitionoverthefairvalueoftheGroup’sshareofthenetidentifiableassetsoftheacquiredsubsidiaryatthedateofacquisition.Goodwillonacquisitionsisincludedinintangibleassets.Good-willonacquisitionsistestedannuallyforimpairmentandiscarriedatcostlessaccumulatedimpairmentlosses.Impair-mentlossesongoodwillarenotreversed.Goodwillisallocatedtothecash-generatingunitsforthepurposeofimpairmenttesting.Theallocationismadetothosecash-generatingunitsthatareexpectedtobenefitfromthebusinesscombinationinwhichthegoodwillarose.

Customer relationsCustomerrelationsarevaluedusingtheexcessoperatingprofitsmethod.Customerrelationshaveafiniteusefullifeandarecarriedatcostlessaccumulatedamortisation.Amortisationiscalculatedusingthestraight-linemethodtoallocatethecostsofthecustomerrelationsovertheirestimatedusefullife.

AmortisationAmortisationischargedtotheincomestatementonastraight-linebasisovertheestimatedusefullivesofintangibleassetsunlesssuchlivesareindefinite.Intangibleassetswithanindefinitelifearesystematicallytestedforimpairmentateachbalancesheetdate.

Reinhard Pusch IntheKPAMgroup5peoplehavebeenworkingonamajorprojectforanaerospacecustomer,checkinghundredsofolddevicestomakesurethattheyarestilloperational.Thisinvolvedsomuchworkthatthecustomerdidnotthinkitwaspossibleforustocompletethecontractwithinthesettime,butwemanageditsuccessfully!

56 RoodMicrotec

Financial assetsFinancialassetsarestatedatfairvalueandarenotheldfortrading.Atyear-endthevalueiscalculatedwiththenetpresentvaluemethod.

InventoriesInventoriesInventoriesarestatedatthelowerofcostandnetrealisablevalue.Costscomprisedirectmaterialsand,whereapplicable,directlabourcostsandthoseoverheadsthathavebeenincurredinbringingtheinventoriestotheirpresentlocationandcondition.Costiscalculatedusingtheweightedaveragemethod.Netrealisablevaluerepresentstheestimatedsellingpricelessallestimatedcostsforinmarketing,saleanddistribution.

Work in progressWorkinprogressconcerningservicesrenderedonworknotyetcompletedisstatedatcostplusamark-upfordirectlyattri-butableoverheads.CostsincludeallexpendituresrelateddirectlytospecificprojectsandanallocationoffixedandvariableoverheadsincurredintheGroup’scontractactivitiesbasedonnormaloperatingcapacity.

Trade and other receivablesTradeandotherreceivablesarestatedatfairvalueandsubsequentlymeasuredatamortisedcostlessimpairmentlosses.

Cash and cash equivalentsCashandcashequivalentsincludecashinhand,depositsheldatcallwithbanks,othershort-termhighlyliquidinvestmentswithoriginalmaturitiesofthreemonthsorless,andbankoverdrafts.Bankoverdraftsareshownseparatelyonthebalancesheet.

ImpairmentThecarryingamountsofassets,ofnon-financialassetsanddeferredtaxassetsarereviewedateachbalancesheetdatetodeterminewhetherthereisanyindicationofimpairment.Ifanysuchindicationexists,theasset’srecoverableamountiscalculated.Intangibleassetsthatarenotavailableforuseorassetsthathaveanindefiniteusefullifearetestedannuallyforimpairment.Therecoverableamountisthehigherofanasset’sfairvaluelesscosttosellanditsvalueinuse.

Animpairmentlossisrecognisedwheneverthecarryingamountofanassetoritscash-generatingunitexceedsitsrecover-ableamount.Impairmentlossesarerecognisedintheincomestatement.

Share capitalOrdinary shares Ordinarysharesareclassifiedasequity.TheGrouphasnotissuedpreferenceshares.

Share premium Thesharepremiumistheconsiderationpaidforsharesinexcessofthenominalvalue.

DividendsDividendsarerecognisedasaliabilityintheperiodinwhichtheyaredeclaredbytheshareholders.

Mezzanine capitalMezzaninecapitalisclassifiedasequityagainstitsnominalvalue.BorrowingsInterest-bearingborrowingsarerecognisedinitiallyatfairvalue,lessattributabletransactioncosts.Borrowingsaresubse-quentlystatedatamortisedcost;anydifferencebetweentheproceeds(netoftransactioncosts)andtheredemptionvalueisrecognisedintheincomestatementovertheperiodoftheborrowingsusingtheeffectiveinterestmethod.

Deferred income taxDeferredincometaxisstatedinfull,usingtheliabilitymethod,ontemporarydifferencesarisingbetweenthetaxbaseofassetsandliabilitiesandtheircarryingamountsintheconsolidatedfinancialstatements.However,thedeferredincometaxisnotaccountedforifitarisesfrominitialrecognitionofanassetorliabilityinatransactionotherthanabusinesscombina-tionthatatthetimeofthetransactionaffectseitheraccountingortaxableprofitorloss.Deferredincometaxisdeterminedusingtaxrates(andlaws)thathavebeenenactedorsubstantiallyenactedbythebalancesheetdateandareexpectedtoapplywhentherelateddeferredincometaxassetisrealisedorthedeferredincometaxliabilityissettled.


Deferredincometaxassetsarerecognisedtotheextentthatitisprobablethatfuturetaxableprofitwillbeavailableagainstwhichthetemporarydifferencescanbeutilised.

Deferredincometaxiscalculatedontemporarydifferencesarisingfrominvestmentsinsubsidiariesandassociates,exceptwherethetimingofthereversaloftemporarydifferencesiscontrolledbytheGroupanditisprobablethattemporarydif-ferenceswillnotbereversedintheforeseeablefuture.

Employee benefitsDefined contribution planObligationsforcontributionstodefinedcontributionpensionplansandrelatedplansarerecognisedasanexpenseintheincomestatementasincurred.

Defined benefit plansTheGroup’snetobligationinrespectofdefinedbenefitpensionplansandrelatedplansiscalculatedseparatelyforeachplanbycalculatingthepresentvalueoffuturebenefitsthatemployeeshaveearnedinreturnfortheirserviceincurrentandpriorperiods;thatbenefitisdiscountedtodeterminethepresentvalueandthefairvalueofanyplanassetsandunrecog-nisedactuarialresultsisdeducted.Thediscountrateistheyieldatbalancesheetdateonhigh-qualitycorporateorgovern-mentbondsthathavematuritydatesapproximatingthetermsoftheGroup’sobligations.Thecalculationisperformedbyqualifiedactuariesusingtheprojectedunitcreditmethod.

Thecompanyconsidersinvestments(insurancepolicies)intheGermanPensionFunds(Unterstützungskasse)asplanassetsiftheyareonlyavailabletoreimbursethecompanyforbenefitspaidtoitsretireesandiftheyarenotavailabletothecom-pany’sowncreditors.

Pastservicecostsarerecognisedasanexpenseintheincomestatementonastraight-linebasisovertheaverageperioduntilthebenefitsarevested.Totheextentthatbenefitsvestimmediately,theexpenseisrecognisedimmediatelyintheincomestatement.

Actuarialgainsandlossesarisingfromexperienceadjustmentsandchangesinactuarialassumptionsinexcessofthegre-aterof10%ofthevalueofplanassetsor10%ofthedefinedbenefitobligationarechargedorcreditedtoincomeovertheemployees’expectedremainingworkinglives.

Share-based payment transactionsTheshareoptionprogrammeallowsemployeesoftheGrouptoacquiresharesinthecompany.Thefairvalueofoptionsisrecognisedasanemployeeexpensewithacorrespondingincreaseinequity.Thefairvalueismeasuredatgrantdateandspreadovertheperiodduringwhichtheemployeesbecomeunconditionallyentitledtotheoptions.Ateachbalancesheetdate,theGrouprevisesitsestimatesofthenumberofoptionsthatareexpectedtovest.Itrecognisestheimpactoftherevisiontooriginalestimates,ifany,intheincomestatement,withcorrespondingadjustmentstoequity.

Theproceedsreceivednetofanydirectlyattributabletransactioncostsarecreditedtosharecapital(nominalvalue)andsharepremiumwhentheoptionsareexercised.TheshareoptionsarevaluedusingtheBlack&ScholesModel.

Profit-sharing and bonus plans TheGrouprecognisesaliabilityandanexpenseforbonusesandprofit-sharingbasedonaformulathattakesintoconsi-derationtheprofitattributabletothecompany’sshareholdersaftercertainadjustments.TheGrouprecognisesaprovisionwherecontractuallyobligedorwherethereisapastpracticethathascreatedaconstructiveobligation.

ProvisionsAprovisionisrecognisedinthebalancesheetwhentheGrouphasalegalorconstructiveobligationarisingfromapastevent,anditisprobablethatanoutflowofeconomicbenefitswillberequiredtosettletheobligation.Iftheeffectismate-rial,provisionsaredeterminedbydiscountingtheexpectedfuturecashflowsatapre-taxratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyand,whereappropriate,therisksspecifictotheliability.

58 RoodMicrotec

Trade and other payablesTradeandotherpayablesarerecognisedinitiallyatfairvalueandsubsequentlymeasuredatamortisedcostusingtheef-fectiveinterestmethod.

Net salesNet salesRevenuesfromproductssoldarerecognisedinaccordancewithIAS18,‘revenue’whentheconditionsforrevenuerecogni-tionaremet.Revenuesfromserviceswhichrelatetoprojects(TestEngineering,Qualification&ReliabilityandFailure&TechnologyAnalyses)areallocatedtothenetsalesonaproratabasisinproportiontothecompletionoftheproject.Revenuesfromserviceswhichrelatetoproduction(Test&End-of-lineServicesandSupplyChainManagement)areallo-catedtonetsalesonaproratabasis.Revenueisrecognisedwhendeliveryhasoccurredorserviceshavebeenrendered,therisksandrewardsofownershiphavebeentransferredtothecustomer,theamountofrevenuecanbemeasuredreliably,andcollectionoftherelatedreceivablecanbereasonablyassured.

Government grantsAnunconditionalgovernmentgrantisrecognisedinthebalancesheetwhenthegrantbecomesreceivable.AnyothergovernmentgrantisinitiallyrecognisedinthebalancesheetasdeferredincomewhenthereisreasonableassurancethatitwillbereceivedandthattheGroupwillcomplywiththeconditionsattachingtoit.GrantsthatcompensatetheGroupforexpensesincurredarerecognisedasrevenueintheincomestatementinthesameperiodsinwhichtheexpensesareincur-red.GrantsthatcompensatetheGroupforthecostofanassetarerecognisedintheincomestatementasrevenueovertheusefullifeoftheasset.

ExpensesOperating lease paymentsPaymentsmadeunderoperatingleasesarerecognisedintheincomestatementonastraight-linebasisoverthetermofthelease.Leaseincentivesarerecognisedintheincomestatementasanintegralpartofthetotalleaseexpenses.

Finance lease paymentsMinimumleasepaymentsareproportionallydividedbetweenthefinancechargeandthereductionoftheoutstandingliability.Thefinancechargeisallocatedtoeachperiodinsuchwaythatthisresultsinaconstantperiodicalinterestrateontheremainingbalanceoftheliabilityduringtheleaseterm.

Net financing costsNetfinancingcostscompriseinterestpayableonborrowingscalculatedusingtheeffectiveinterestratemethod.Theinte-restexpensescomponentoffinanceleasepaymentsisrecognisedintheincomestatementusingtheeffectiveinterestratemethod.

Income taxIncometaxontheprofitorlossfortheyearcomprisescurrentanddeferredtax.Incometaxisrecognisedintheincomestatementexcepttotheextentthatitrelatestoitemsrecogniseddirectlyinequity,inwhichcaseitisrecognisedinequity.

Currenttaxistheexpectedtaxpayableonthetaxableincomefortheyear,usingtaxratesenactedorsubstantiallyenactedatthebalancesheetdateandanyadjustmenttotaxinrespectofpreviousyears.

Additionalincometaxesthatarisefromthedistributionofdividendsarerecognisedatthesametimeastheliabilitytopaytherelateddividend.

Cash flow statementThecashflowstatementispreparedusingtheindirectmethod.Itdistinguishesbetweenoperating,investingandfinancingactivities.Paymentsandreceiptsofcorporatetaxesandinterestareincludedascashflowfromoperatingactivities.Cashflowarisingfromdivestmentoffinancialinterestsingroupcompaniesandsubsidiariesisincludedascashflowfrominves-tingactivities,takingintoaccounttheavailablecashintheseinterests.Ifapplicabledividendspaidarepartofthecashflowfromfinancingactivities.

Non-recurringcashflowstoGermanpensionfunds(Unterstützungskasse)areclassifiedascashflowsarisingfrominvestingactivitiesiftheinvestmentleadstorecognizableassetsorplanassets.Boththebenefitspaidtoretireesandthereceiptofthepensionfundthatrelatestoorreimbursesthisbenefitpaymentareincludedascashflowfromoperatingactivities.Are-ceiptoftheresidualvalueoftheinsurancepolicyheldbythepensionfundisincludedascashflowfrominvestingactivities.


Financial risk management and sensitivity analysisTheGroup’sactivitiesareexposedtoavarietyoffinancialrisks:marketrisks(includingcurrencyriskandinterestraterisk),creditrisksandliquidityrisks.TheGroup’soverallriskmanagementprogrammefocusesontheunpredictabilityofmarkets(debtormanagement)andtriestominimisepotentialadverseeffectsontheGroup’sfinancialperformance.TheGroupmakeslimiteduseofderivativefinancialinstrumentstohedgecertainriskexposures.Riskmanagementisperformedbythefinancedepartment.

Foreign currency risks and sensitivity analysisWithintheGroup’scustomerportfolio,theGroupisexposedtocreditriskandcurrencyrisk.Themanagementhassetupcreditcontrolpoliciestoreducethecreditriskandforeignexchangeriskasmuchaspossible.TheforeignexchangeriskismitigatedbyexchangerateclausesinmostoftheGroup’scontracts.NoprocurementforUSdollardenominatedcustomerstookplacein2011.TheaveragecreditratingoftheGroup’scustomersiscomparabletotheindustry.TheGroupoperatesinternationallybutin2011allsalestransactionswereconcludedineuros.Theexchangerateresultsduring2011wereminimal.

(xEUR1,000) 2011 2010

Eurodenominatednetsales 15,717 13,860USdollardenominatednetsales - 1,703

Balance at 31 December 15,717 15,563

Borrowing risks and sensitivity analysisAlloftheGroup’slong-termborrowingshavefixedinterestratespartiallyrealisedbywayofinterestrateswaps.Thebankoverdraftscarryafloatingrate.ThevalueoftheseswapsisapproximatelyEUR20,000.Generally,theGroupraisesnewlong-termborrowingsatfixedrates.ThetablebelowsetsouttheGroup’sborrowingsposition.

(xEUR1,000) Fixedrate Floatingrate

Long-termborrowingsfrombanks 1,240 -Long-termborrowingsfromotherparties 676 -Bankoverdrafts - 1,115

Balance at 31 December 2011 1,916 1,115

In2011thelargerpartofthelong-termborrowingsfrombankswerefromHypoVereinsbankUniCreditBankAG(Donauwörth),ratedAandVRLeasing(Germany),ratedAbyStandard&Poor’s.TheborrowingsfromotherpartieswerefromICNpartRoodB.V.(Netherlands)andprivateinvestors.In2010thefloating-ratebankoverdraftswereobtainedfromtheHypoVereinsbankUniCreditBankAG(Donauwörth)andCommerzbank(Augsburg).Asaresultofthecurrentfinancialpositionandcapitalstructureofthecompany,theGroup’sinterestrisksareintheshortterm(1year)limitedtointerestchangesforthecreditfacilitycarryingafloatinginterestrate.Achangeby300basispointsinthechargedinterestratewouldresultinanincreaseordecreaseofthe2011resultofapproximatelyEUR33,000assumingthatallothervariables,especiallyexchangerates,remainconstant.Long-terminterestrisks(startingfromoneyear)arelimitedastheinterestratesarefixedbyinterestrateswaps.Uponarenewalofinterestrateswaps,long-terminterestrateschangedby300basispointswouldresultinanincreaseordecreaseofapproximatelyEUR57,000.

60 RoodMicrotec

Carscontainmoreandmoresensorsthatimprovecomfortandeaseofuse.TheyarepresentintheABSsystemforbetterbraking,intheairbagsystemandtheparkingassistancesystemintherearbumperofthecar.Sensorsaresometimescalledtheelectronicsensesofthemicrocomputer.Astheyareoftenexposedtoextremeconditions,dependingonhowtheyareusedinthevehicle,theproperfunctioningofthecarelectronicsisdependentontheirreliability.


Liquidity riskPrudentliquidityriskmanagementimpliesmaintainingsufficientcashandtheavailabilityoffundingthroughanade-quatecreditfacility.ManagementmonitorsrollingforecastsoftheGroup’sliquidityreserveandcashandcashequivalents.Furthermore,liquidityplanningisoneofthemajorelementsintheGroup’sbudgetcycle.Duetocompany’sworkingcapitalratioandmarketconditions,managementhastightmonitoringproceduresinplaceregardingdirectcashflows.Boththecashpositionandsalesforecastsarefrequentlyreviewed.Market interest rates and pensionsChangesindiscountratesusedinpensioncalculationsarerelatedtothechangesincapitalmarketinterests.Changesindiscountrateswillresultinactuarialgainsorlosses.Theseactuarialgainsandlossesarenotallimmediatelyrecognisedintheincomestatement,butspreadovertheexpectedremainingworkinglivesoftheemployees,whichmitigatestheimpactofthisrisk.Disregardingthismitigationa1%decreaseinthemarketinterestrateatyear-endwouldincreasepensioncostsbyapproximatelyEUR580,000.A1%increaseofthemarketinterestrateatyear-endwouldleadtoadecreaseofpensioncostsbyapproximatelyEUR500,000.

Capital risk managementThegroup’sobjectiveswhenmanagingcapitalaretosafeguardthegroup’sabilitytocontinueasagoingconcerninordertoprovidereturnsforshareholdersandbenefitsforotherstakeholdersandtomaintainanoptimumcapitalstructuretoreducethecostofcapital.Inordertomaintainoradjustthecapitalstructure,thegroupmay,ifandwhenapplicable,adjusttheamountofdividendspaidtoshareholders,returncapitaltoshareholders,issuenewsharesorsellassetstoreducedebt.Consistentwithotherpartiesintheindustry,thegroupmonitorscapitalbasedonthegearingratio.

Thisratioiscalculatedasnetdebtdividedbytotalcapital.Netdebtiscalculatedastotalborrowings(including‘currentandnon-currentborrowings’asshownintheconsolidatedbalancesheet)lesscashandcashequivalents.Totalcapitaliscalcula-tedas‘equity’asshownintheconsolidatedbalancesheetplusnetdebt.

During2011,thegroup’sstrategywastodecreasethegearingratiosignificantly.Belowisstatedthegearingratioof2011comparedto2010.

(xEUR1,000) 2011 2010

Totalborrowings 3,031 3,592Lesscashandcashequivalents -345 -258

Net debt 2,686 3,334Totalequity 6,138 5,647

Total capital 8,824 8,981

Gearing Ratio (net debt/capital x 100%) 30% 37%

62 RoodMicrotec

1. Net salesTheGroupisactiveinoneoperatingsegment.Salesarereportedinternallyaswellasexternallyindifferentproduct/servicesgroups.EverymonthaconsolidatedP&Lisprepared,basedonwhichananalysisandmanagementreportiscommunicated.MonthlyP&Lsperproduct/servicegrouparenotavailable.Ad-hocsegmentedinformationispreparedifandwhenneces-sary.Onlyasmallpartofthefixedassets(EUR13,000)islocatedintheNetherlands.ThebulkofthetangiblefixedassetsislocatedinGermany.Net sales by business unit(xEUR1,000) 2011 2010

Test 7,264 7,657SupplyChain 3,556 3,060Failure&TechnologyAnalysis 1,667 1,842TestEngineering 887 762Qualification 2,343 2,242

Total 15,717 15,563

Net Sales by country in 2011(xEUR1,000) 2011 2010

Germany 6,625 5,939USA 2,560 2,764EasternEurope 1,930 1,398China/Asia 634 1,363RestofEurope 3,781 3,775RestoftheWorld 187 324

Total 15,717 15,563

2. Cost of sales (xEUR1,000) 2011 2010

Changeinworkinprocesscapitalised -253 121Costofrawmaterialsandconsumables -3,122 -3,442

Total -3,375 -3,321


3. Personnel expenses(xEUR1,000) 2011 2010

Salaries 6,145 5,731Socialsecurity 938 989Shareoptionsgrantedtodirectorsandemployees 28 27Pensioncharges 104 326

Total Personnel Expenses 7,215 7,073

TheaveragenumberofpeopleemployedbytheGroupin2011onafull-timebasiswas111(2010:124).

Atyear-end2011theGroupemployed106people(2010:120).Altoughatyear-endfewerpeopleareemployedbythecom-panycomparedto2010,personnelcostsincreasedduetoreduceduseofshorttimeworkarrangementinGermanyandrestructuringcosts.

4. Other operating expenses(xEUR1,000) 2011 2010

Otheroperatingexpenses 3,262 2,804Currencydifferences - 4

Total 3,262 2,808

Auditor’s fee 2011ThetaskoftheexternalauditoristoaudittheannualaccountsofRoodMicrotecN.V.MazarsPaardekooperHoffmanAc-countantsN.V.chargesEUR24,000forthestatutoryaudit.Taxadviceisinprinciplegivenbyspecialistfirmsorspecialiseddepartmentsoflocalauditfirms,whicharerarelyinvolvedintheauditoftheannualaccountsoftherelevantsubsidiary.Otherthantheseadvisoryservices,RoodMicrotecN.V.makesonlylimiteduseofexternaladvisors.Ifsuchservicesarere-quired,specialistsareengagedthatarenotassociatedwiththeexternalauditor.Thefeesfortheabovementionedservices,whichareincludedin‘otheroperatingexpenses’areevaluatedregularlyandinlinewiththemarket.(xEUR1,000) Statutory Otherauditor Total

Auditofannualaccounts 24,000 45,000 69,000Otherassuranceservices 5,000 5,000 10,000Nonaudit 3,000 22,000 25,000

Total 32,000 72,000 104,000

64 RoodMicrotec

Emergencyserviceslikethepolice,thefirebrigadeandambulancesusetelecommunications.Whenanalarmcomesin,thefiremencanseetheaddresstheyaregoingtoontheirMTDsystem(MobileDataTerminals).Thesystemalsoprovidesinfor-mationaboutthehomeorbusiness,likeescaperoutes,dangerouschemicals,etc.Satellitetelecommunicationscanalsocontributetothefulfilmentofawiderangeofinstitutionalrequirements:fromsupportingthedevelopmentoflessfavouredregionstotheprovisionoftelecommunicationsortelemedicineservicesinemergenciesordisastersituations.

Credits:ESA-P.Carril


5. Depreciation and amortisation(xEUR1,000) 2011 2010

Intangiblefixedassets 28 28Landandbuildings 39 95Machineryandequipment 991 1,334Otherfixedassets 98 171

Total 1,156 1,628

6. Financial expenses(xEUR1,000) 2011 2010

Interestexpenses: -bankborrowings 226 277-convertibleloan - 53-otherloans 64 193-otherfinancialexpenses 11 3

Total 301 526

Interestpaid 262 446Interestaccrued 39 80

Total 301 526

7. Taxation(xEUR1,000) 2011 2010

Incometaxcurrentyear - -Recognitionoftaxlossescarriedforward 247 225Changeindeferredtaxliability -67 16

Total 180 241

2011 2010

Resultbeforetax 408 207 Expectedtaxation/useoftaxassets(basedonaveragestatutorytaxrates) -131 -62Recognitionoftaxassets 378 287Changeintaxliability -67 16

Total 180 241

66 RoodMicrotec

8. Property, plant and equipment

(xEUR1,000) Landandbuildings Machinery atfairvalue andequipment Other Total

1 January 2010Costorvaluation 4,727 22,322 2,362 29,411Accumulateddepreciation -1,289 -19,500 -1,993 -22,782

Opening net book amount1 January 2010 3,438 2,822 369 6,629Additions - 652 29 681Disposals/transfers - -719 -99 -818Depreciationcharge -95 -1,334 -171 -1,600Depreciationchargedisposals - 719 99 818

Closing net book amount31 December 2010 3,343 2,140 227 5,710

1 January 2011 Costorvaluation 4,727 22,255 2,292 29,274Accumulateddepreciation -1,384 -20,115 -2,065 -23,564

Opening net book amount1 January 2011 3,343 2,140 227 5,710Additions - 503 521 1,024Disposals/transfers -21 - - -21Adjustmentdepreciationprev.years 38 - - 38Revaluation2011 147 - - 147Depreciationcharge -77 -991 -98 -1,166

Closing net book amount31 December 2011 3,430 1,652 650 5,732

31 December 2011 Costorvaluation 4,707 22,758 2,813 30,278Accumulateddepreciation -1,277 -21,106 -2,163 -24,546

Net book amount31 December 2011 3,430 1,652 650 5,732

Usefuleconomicallifeinyears 30* 2-10 4-10

*=Until2010adepreciationperiodof70yearswasused.Withtherevaluationofthebuildingsin2011,managementappliestheeconomicallifeasperyear-end,whichisestimatedat30years.


Land and buildings at historical cost

(xEUR1,000) 2011 2010

Initialcostslandandbuildings 4,707 4,727Accumulateddepreciation -3,970 -3,875

Netbookamount 737 852

AccordingtothevaluationreportdatedNovember2011preparedbyDiplom-Betriebswirt(FH)FriedrichKiefer,thefairvalueofthebuildingisEUR3,430,000(valuationin2008:EUR3,535,000).Thevaluationofthebuildingisbasedonamarketvaluationoflandandrentalvalueincombinationwiththetechnicallifeofthebuilding.ThenextvaluationisscheduledforDecember2014.

Impairment loss and subsequent reversalThecompanyneitherincurrednorreversedanyimpairmentlossesin2011.In2011,thelandandbuildingassetswerereva-luedtoitsfairvalue.

Assets under constructionAssetsunderconstructionareincludedinthecategory‘other’andtotalEUR277,000(2010:nil).

SecurityThefollowingtypesofsecurityhavebeenprovidedforlong-termandcurrentliabilities:• amortgagetotallingEUR3,323,379ontherealestatesituatedatOettingerStrasse6,Nördlingen,Germany;• apledgeonmachineryandequipment.

Government grantsGrantsincludedinproperty,plantandequipmenttotalledEURnilin2011(2010:87,000).Thisamountisrecognisedinmachi-neryandequipment.

Alexander Scheitza (Test Operations Manager)TheundisputedmainpointofthepastyearwasmovingourtestequipmentfromStuttgarttoNördlingen.Itinvolvedmorethanjustthephysicalrelocationofthemachines.Wemadeathoroughanalysisofourcustomersandtheirwishesinadvance.Whentherelocationwascomplete,wethenhadtocorrelatealltheproducts.Itisbeenahugejob,butithasbeenagreatsuccess.

68 RoodMicrotec

9. Intangible assets(xEUR1,000) Goodwill Customerrelations Total

Opening balance 1 January 2010 Cost 1,741 140 1,881Accumulatedamortisationandimpairmentcharges - -42 -42

Netbookamount1January2010 1,741 98 1,839

Year ended 31 December 2010 Openingnetamount 1,741 98 1,839Amortisationcharge - -28 -28

Closingnetbookamount31December2010 1,741 70 1,811

31 December 2010 Cost 1,741 140 1,881Accumulatedamortisationandimpairmentcharges - -70 -70

Netbookamount31December2010 1,741 70 1,811

Opening balance 1 January 2011 Cost 1,741 140 1,881Accumulatedamortisationandimpairmentcharges - -70 -70

Netbookamount1January2011 1,741 70 1,811

Year ended 31 December 2011 Openingnetamount 1,741 70 1,811Amortisationcharge - -28 -28

Closing net book amount 31 December 2011 1,741 42 1,783

31 December 2011 Cost 1,741 140 1,881Accumulatedamortisationandimpairmentcharges - -98 -98

Net book amount 31 December 2011 1,741 42 1,783

Goodwillistestedannuallyforimpairment.ThegoodwillisallocatedtotheGroup’scash-generatingunitRoodMicrotecStuttgartGmbH.Therecoverableamountofthiscash-generatingunitisdeterminedusingvalueinusecalculations.Thesecalculationsusepre-taxcashflowprojectionsbasedonfinancialbudgetsapprovedbymanagementcoveringafive-yearperiodwithanaveragesalesgrowthof7%.Cashflowsbeyondthefive-yearperiodareextrapolatedataflatsalesgrowth.Managementdeterminesthebudgetsbasedonpastperformanceandexpectationsofmarketdevelopment.Thediscountrate(WACCof11.44%)usedispre-taxandreflectsspecific(market)risksandrepresentsthecurrentWACCofthecompany.TheproportionoftheequityanddebtusedintheWACCcalculationisbasedontheoptimumcapitalstructure.

Sensitivity Analysis GoodwillWhensensitivityanalysisisperformed,usingadiscountrateintherangebetween11%to14%andbyadjustingtheexpectedcashflowstoa15%decrease,thegoodwillstillwouldnotrequireanimpairmentprovision.


10. Deferred income tax assets and liabilitiesDeferredincometaxassetsandliabilitiesareoffsetwhenthereisalegallyenforceablerighttooffsetcurrenttaxassetsagainstcurrenttaxliabilitiesandwhenthedeferredincometaxesrelatetothesametaxauthority.Theamountsoffsetareattributedtothefollowingitemsinthetable.Thedeferredincometaxassetsandliabilitiesoriginatefromdifferenttaxjurisdictions.

(xEUR1,000) 2011 2010

Deferredincometaxassettoberecoveredaftermorethan12months 1,130 917Deferredincometaxassettoberecoveredwithin12months 226 191

Deferred income tax asset (unnetted) 1,356 1,108

Deferredtaxliabilitytoberecoveredaftermorethan12months -913 -846Deferredtaxliabilitytoberecoveredwithin12months - -

Deferred income tax liability (unnetted) -913 -846

Deferredtaxassetsandtaxliabilitieswithinthesamejurisdictionarenettedinbalancestatementsasfollows:

(xEUR1,000) 2011 2010

Deferredtaxassetjurisdiction1 734 687Deferredtaxliabilityjurisdiction1 -176 -99

Deferred tax asset (netted) 558 588

Deferredtaxassetjurisdiction2 622 421Deferredtaxliabilityjurisdiction2 -736 -747

Deferred tax liability (netted) -114 -326

Themovementindeferredtaxassetsandliabilitiesduringtheyear,nottakingintoconsiderationtheoffsettingofbalanceswithinthesametaxjurisdiction,isasfollows:

Deferred tax assets(xEUR1,000) Capitalizedcarry forwardlosses Total

Balance at 1 January 2010 883 883Charges(credited) 225 225Balance at 31 December 2010 1,108 1,108 Balance at 1 January 2011 1,108 1,108Charges(credited) 248 248

Balance at 31 December 2011 1,356 1,356

70 RoodMicrotec

ThisisaphotographoftheMESA+NanoLabofTwenteUniversity,whereresearchersoftheInstituteforNanotechnologystudyandmanufacturemicroandnanosensors.Their1,000sqmcleanroomhasspecial‘wetbenches’wherehighlypurechemicalsareused;thisisnecessarytomaketheminuteandhighlysensitivestructures.This‘yellowroom’isequippedtodealwiththefactthatcertainchemicalsarehighlysensitiveandreactivetoawavelengththatispresentinwhitelight.Thisiswhythelightisfilteredwithayellowfilter.

MESA+NanoLabhasextensivelaboratoryfacilitiesatitsdisposal,offeringawidespectrumofopportunitiesforresearchersintheNetherlandsandabroad.MESA+NanoLabplaysacentralpartincollaborationswithindustry.MESA+hasastrongrelationshipwiththeindustry,boththroughjointresearchprojectswiththelargermultinationalcompanies,andthroughacooperationpolicyfocusedonsmallandmedium-sizedenterprises.


Theboardofmanagementhasdecidedtorecogniseasmallamountofdeferredtaxassetsforallofthetaxlossesthatareavailableforcompensationoffuturetaxpayments.ForthelossesavailableforcompensationintheNetherlandsnodefer-redtaxassetshavebeenrecognised.InGermanythereisnolimitationtothecompensationtermoftaxlosscarryforwards.Thereis,however,uncertaintyandnostrongevidenceatbalancesheetdatethatalllosseswillbecompensated.Projectedtaxpaymentsresultingfromprofitsgeneratedinthenextthreeyearshavebeenrecognisedastaxassetsasat31December2011.Thethree-yearsperiodcor-respondstothetermofourdetailedbusinessplan.TheunrecognisedtaxlossesintheNetherlandstotalapproximatelyEUR2.5million(ofwhichEUR1.7millionusableupto2013).TheunrecognisedtaxlossesinGermanytotalapproximatelyEUR10millionin‘Körperschaftssteuer’(indefiniteintime)andapproximatelyEUR4millionin‘Gewerbeertragssteuer’(indefiniteintime).TheapplicabletaxrateinGermanyis30%.Deferredtaxassetsarenettedwithdeferredtaxliabilitieswhenpossible.

Deferred tax liabilities(xEUR1,000) Accelerated Fairvalue Taxdepreciation gainsLand Intangible Land&Buildings &buildings assets Other Total

Balance at 1 January 2010 29 718 42 69 858

Depreciationland&buildingsx30% 29 -29 - - -Charged(credited)totheincomestatement - - -15 3 -12

Balance at 31 December 2010 58 689 27 72 846

Depreciationland&buildingsx30% 5 - - - 5Charged(credited)totheincomestatement - - - 7 7Revaluationbuildingstaxdifference -63 118 - - 55

Balance at 31 December 2011 - 807 27 79 913

Asaresultoftherevaluationoflandandbuildings,aprovisionfordeferredtaxliabilitieshasbeenrecognisedamountingto30%ofthedifferencebetweenthefiscalandcommercialvaluation.TheadjustmenttotheopeningbalancerelatestothedifferencebetweencommercialandfiscalvaluationofintangibleassetsthatwererecognisedattheMicrotecacquisitionin2008.

11. Financial assets(xEUR1,000) 2011 2010

Balance at 1 January 1,665 1,803Investments(proceeds) 55 -138


Thefinancialassetscompriselifeinsurancepolicies.Thesepolicieswereconcludedinordertofinancefuturepensionliabi-lities.However,theinsurancecontractsdonotplacethecompanyunderanyformalandlegalobligationstowardspensionliabilitiesandpensioners.Thecompanyisfreetousethesecashflowsinthecompany’sregularoperatingcashflows.Conse-quently,theseassetsdonotqualifyaspensionassetsaccordingtoIAS19.

72 RoodMicrotec

12. Inventories(xEUR1,000) 2011 2010

Rawmaterialsandconsumables 62 153Workinprogress 137 277Finishedservices 203 224

Total 402 654

13. Trade and other receivablesThetablebelowshowstheGroup’soutstandingtrade&otherreceivablespositions.

(xEUR1,000) 2011 2010

Notoverdue 1,390 1,782<30daysoverdue 498 551>30daysand<60daysoverdue 75 155>60daysoverdue 198 94Provisionsforbaddebt -81 -12

Tradereceivables 2,080 2,570

Otherreceivables 351 470

Trade and other receivables 2,431 3,040

Impairment provisions for bad debt(xEUR1,000) 2011 2010

Balanceat1January -12 -35Additiontothebaddebtprovision -76 -24Writeoffbaddebts 7 47

Balance at 31 December -81 -12

14. Cash and cash equivalents(xEUR1,000) 2011 2010

Cashatbankandonhand 345 258Bankoverdrafts -1,115 -603

Total -770 -345

Thesecuritystatedunderlong-termliabilitieshavealsobeenprovidedtoGermancreditinstitutionsforthecurrentliabili-ties.Thecreditlinewiththesebanksasof31December2011totalledEUR1,625,000.Theinterestratesrangesfrom6.7%to9.1%(2010:6.7%to8.5%).ThecreditlinewiththecreditinstitutionsintheNetherlandsasof31December2011totalledEUR75,000,withoutanysecurity.


15. Share capitalAuthorised share capitalAt31December2011theauthorisedsharecapitalcomprised50,000,000ordinaryshares(2010:50,000,000).TheshareshaveanominalvalueofEUR0.11each.At31December2011,35,769,184ordinaryshares(2010:35,769,184)wereinissue.Themembersofthesupervisoryboarddonotholdanysharesinthecompany.Theboardofmanagementholds969,999sharesinthecompany.Thecompanyholds4,100ordinaryshares(2010:4,100)initsownsharecapital.Thenumberofsharesheldbythecompanyattheendoftheyearunderreviewwaslessthan0.01%oftheissuedandpaid-upcapital(2010:<0.01%).ReservesAsaresultoftherevaluationoflandandbuildingsarevaluationreservehasbeenrecognised.Therevaluationreservecannotbeusedfordividendpayments.

Mezzanine capitalAsat30November2010thegroupissuedaperpetualbondofEUR1,994,096toPlentumLuxembourgS.à.r.L(owner)forthefinancingofthepensionliabilitiesofRoodMicrotecNördlingenGmbH&Co.KG.Thiscapitalwasimmediatelytrans-ferredandpaidtoaGermanpensionfundnamed‘Unterstützungskasse’.Germanlawdeemsthispensionoutsourcing.Pensionrisksandliabilitiesrelatedtothepensioners,however,havenotbeenchanged.InaccordancewithIFRSaccountingstandards,theseriskshavebeenrecognisedinthefinancialstatements.Anannualcompensationof11.70%canbepaidbutisatthediscretionofthecompany.Compensationsbecomedueonlyif,andinsofaras,RoodMicrotecdecidesonsuchapay-ment.IfRoodMicrotecdecidesagainstapayment,itisnotobligedtopaycompensation.Onlythecompanycanunilaterallycallinthisbond.ThisbonddoesnotentitletheownertoanyRoodMicrotecN.V.shareholderrights.Ifanannualcompensationpaymentleadstoanannualnetlossforthecompanyinthebusinessyeartowhichthedetermi-ningprofitperiodrefers,orincreasesanetloss,theclaimtothiscompensationdoesnotarisefortheaccountingperiod.

16. Earnings per shareBasicBasicearningspersharearecalculatedbydividingtheprofitattributabletoequityholdersofthecompanybytheweightedaveragenumberofordinarysharesinissueduringtheyear.

(xEUR1,000) 2011 2010

Profitattributabletoequityholdersofthecompany 588 448Weightedaveragenumberofordinarysharesinissue(inthousands) 35,769 35,207Basicearningspershare(xEUR1) 0.02 0.01

DilutedDilutedearningspersharearecalculatedbyadjustingtheweightedaveragenumberofordinarysharesoutstandingtotakeintoaccountconversionofalldilutivepotentialordinaryshares.Thecompanyhasonecategoryofpotentiallydilutiveordi-naryshares:shareoptions.Fortheshareoptions,acalculationismadetodeterminethenumberofsharesthatcouldhavebeenacquiredatfairvalue(definedastheaverageannualmarketpriceofthecompany’sshare)basedonthemonetaryva-lueofthesubscriptionrightsattachedtooutstandingshareoptions.Thenumberofsharesascalculatedaboveiscomparedwiththenumberofsharesthatwouldhavebeenissuediftheshareoptionshadbeenexercised.

(xEUR1,000) 2011 2010

Profitattributabletoequityholdersofthecompany 588 448

Profitusedtodeterminedilutedearningspershare(x1,000) 588 448

Weightedaveragenumberofordinarysharesinissue 35,769 35,207Adjustmentsfor: -shareoptions(inthemoney) 366 356Weightedaveragenumberofordinarysharesfordilutedearningspershare 36,135 35,563Dilutedearningspershare(xEUR1) 0.02 0.01

74 RoodMicrotec

17. OptionsShare optionsShareoptionsaregrantedtodirectorsandtoselectedemployees.Theexercisepriceofthegrantedoptionsisequaltothemarketpriceofthesharesless10%onthedateofthegrant.Someoptionsareconditionalontheemployeecompletingthreeyears’service(vestingperiod).TheGrouphasnolegalorconstructiveobligationtorepurchaseorsettletheoptionsincash.TheshareoptionsarevaluedusingtheBlackandScholesvaluationmodel.Thefollowingdatahavebeenusedforthecalculation:

• 30%volatility,60days• Weightedaverageshareprice:0.23• 1%dividendyield• 2.3%annualrisk-freeinterestrate• Expectedoptionlifeof3yearsThevalueofthegrantedoptionsin2011wasEUR28,000(2010:EUR27,000).

Share option rightsTheoverviewofalloptionrightsoutstandingon31December2011isasfollows:

Granted Options Granted Exercised Expired Options Exercise Firstdate LastdateIn/ in in in pricein€ of ofTo 31-12-10 2011 2011 2011 31-12-11 (average) exercise exercise

2006 40,700 - - 40,700 - 0.51 5Jan09 4Jan112007 48,500 - - - 48,500 0.55 5Jan10 4Jan122008 61,500 - - 61,500 - 0.37 9Jun08 8Jun112010 180,000 - - - 180,000 0.17 07Jul10 07Jul13

Employee Rights 330,700 - - 102,200 228,500 0.44

2010 175,888 - - - 175,888 0.11 2mar10 2mar132011 - 190,000 - - 190,000 0.11 30dec11 30dec14

Rights Nijenhuis 175,888 190,000 - - 365,888 0.11

Total 506,588 190,000 - 102,200 594,388 0.15

Options exercised in 2011 and effects on equityIn2011nooptionswereexercised.(2010:572,999optionsexercisedatanexercisepriceofEUR0.11)

Supervisory boardAsat31December2011,themembersofthesupervisoryboarddidnotholdanyoptionsonsharesinthecompany.

Mr. Ph.M.G. NijenhuisDuringthetimeofhisemploymentcontract,MrPh.M.G.Nijenhuis,CEOoftheGroup,willbegranted100,000optionsperhalfyearplusamaximumof100,000optionsperhalfyeardependingontheachievementofcertaintargetsrelatedtotheGroup’sperformance.Theoptionswillbegrantedinhalf-yearlyportions.Thetargetsaredefinedbythesupervisoryboard.

Anumberof190,000optionswheregrantedtotheCEOin2011,whichrelatetotheserviceperiodinthesecondhalfof2010.Thecostsfortheseoptionswererecognizedin2010.FortheCEOforthefirstandsecondhalfof2011nooptionstotheCEOweregrantedandapprovedbythesupervisoryboard.Heretoaprovisionhasbeenrecognizedfor370,000potentialoptionsrightsfortheCEO.Aschemehasbeenputupinplaceforexercisingtheshareoptions,whichstipulatesthattheexercisepriceoftheshareoptionsmustbepaidatthetimewhentheyarecashedin.


18. Interest-bearing loans and borrowingsThisnoteprovidesinformationonthecontractualtermsoftheGroup’sinterest-bearingloansandborrowings.

(xEUR1,000) 2011 2010

Securedbankloans 1,240 1,600Unsecuredbankloans - -Financeleaseliabilities 426 489Otherloans 250 400

1,916 2,489Less:currentportionoflong-termloans -839 -842

1,077 1,647

Terms and debt repayment schedule(xEUR1,000) Total Current Non-current 1to2 2to5 morethan Liabilities Liabilities Years Years 5years

Securedbankloans 1,240 420 820 420 400 -Financeleaseliabilities 426 169 257 129 128 -Otherloans 250 250 - - - -

Total 1,916 839 1,077 549 528 - Convertibleloans - - - - - -

Totalinterest-bearing 1,916 839 1,077 549 528 -loansandborrowings

Bankoverdrafts 1,115 1,115 - - - -Tradeandotherpayables 1,851 1,851 - - - -Currentincometaxliabilities 209 209 - - - -

Totalothercurrent 3,175 3,175liabilities - - - -

Total 5,091 4,014 1,077 549 528 -

Thefairvaluesoftheinterest-bearingloansandborrowingsareapproximatestothenominalvalue(bookvalue).

Interest expenses repayment schedule(xEUR1,000) Total Current Non-current 1to2 2to5 morethan Liabilities Liabilities Years Years 5years

Lease 39 19 20 11 9 -Loan 138 80 58 43 15 -

Total 177 99 78 54 24

Secured bank loansThebankloansandthecurrentliabilitiestocreditinstitutionsaresecuredbyamortgageonlandandbuildings,withacarryingamountofEUR3,323,397,pledgesonmachineryandequipment,pledgesontradereceivablesandinventoriesandcorporateguaranteesforliabilitiesofsubsidiariesamountingtoEUR300,000.

76 RoodMicrotec

MostpeopleassociateLEDswithlow-energylighting.Theyaremarketedasareplacementforlightbulbs,halogenandtube-lights.LEDsarefarmoredurablethanlow-energylightbulbs.It’scrucialforlongevitythattheheatisremovedefficiently.ThisiswhyqualityLEDlightshave‘ribs’thatworkasakindoffan,removinghotair.TheLED’sapplicationsarealmostlimitless.Theyareusedassignallights,intheautomotiveindustry,instreetlighting,traf-ficlights,etc.IntheinteriordesignworldLEDsarealsoontherise,becausetheyallowforverydifferentlampdesigns.


Finance lease liabilitiesTheGroupleasescertainequipment;leasesforwhichtheGroupbearssubstantiallyalltherisksandrewardsofownershipareclassifiedasfinanceleases.Financeleasesarecapitaliseduponthecommencementoftheleaseatthelowerofthefairvalueoftheleasedequipmentandthepresentvalueoftheminimumleasepayments.

In2011newfinancialleaseswerecontractedtotallingEUR215,000(2010:EUR242,000).

Eachleasepaymentisdividedproportionallybetweentheliabilityandfinancechargessoastoachieveaconstantrateontheoutstandingfinancebalance.Thecorrespondingrentalobligations,netoffinancialcharges,areincludedinothershort-termandotherlong-termpayables.Theinterestcomponentofthefinancialexpenseischargedtotheincomestatementovertheleaseperiodsoastoproduceaconstantperiodicrateofinterestontheremainingbalanceoftheliabilityforeachperiod.Theequipmentacquiredunderfinanceleasesisdepreciatedovertheusefullifeoftheasset.

MachineryandEquipmentincludesthefollowingamountswheretheGroupisalesseeunderafinancelease:(xEUR1,000) 2011 2010

Cost-capitalisedfinanceleases 2,493 2,278Accumulateddepreciation -2,004 -1,702

Netbookamount 489 576

(xEUR1,000) 2011 2010

Grossfinancialleaseliabilities 2,835 2,592Leasetermspaid -2,370 -2,069

Outstanding lease terms 465 523 Within1year 188 293Between1and2years 125 230Between2and5years 152 -

Outstanding lease terms 465 523Lessinterestexpenses -39 -34

Present value of financial lease liabilities 426 489

(xEUR1,000) 2011 2010

Presentvalueoffinancialleaseliabilities Within1year 169 292Between1and2years 129 197Between2and5years 128 -

Present value of financial lease liabilities 426 489

Interest rates

Theaverageinterestspaidwereasfollows: 2011 2010

Bankoverdrafts 6.67%-9.13% 6.67%-8.50%Bankloans 6.67%-7.90% 6.67%-7.90%Financeleaseliabilities 4.41%-6.49% 4.41%-6.69%Otherloan 4.50%-7.50% 4.50%-7.50%

78 RoodMicrotec

19. Retirement benefit obligations

(xEUR1,000) 2011 2010 2009 2008 2007

Actuarial assumptions Discountrateat31December 5.4% 5.1% 5.5% 5.7% 5.5%Expectedreturnonplanassetsat31December 4.0% 4.0% 4.0% 4.0% 4.0%Medicalcosttrendrate 0% 0% 0% 0% 0%Futurepensionincreases 1.0% 1.0% 1.0% 1.0% 1.0%Inflation 1.0% 1.0% 1.0% 1.0% 0%Pension obligations and plan assets Openingdefinedobligation 5,121 4,860 4,688 3,351 3,812Acquisitionofsubsidiary - - - 1,411 -Servicecosts 24 28 28 21 24Interestcosts 253 260 261 220 168Actuarialgain(-)orloss 154 230 125 -141 -487Pensionpayments -281 -257 -242 -174 -166

Presentvalueofpensionobligations 4,963 5,121 4,860 4,688 3,351 Openingfairvalueofplanassets 3,389 1,397 1,396 1,392 1,387Newassetplan - 1,994 - - -Expectedreturnonplanassets 132 45 55 55 56Actuarialgain(-)orloss -53 - -7 -3 -4Contributionsbyemployer 18 17 17 16 17Benefitspaid -202 -64 -64 -64 -64

Closingfairvalueofplanassets 3,390 3,389 1,397 1,396 1,392 Netpresentvalueofunfundedobligations(pensionobligations-/-planassets) 1,573 1,732 3,463 3,292 1,959Unrecognisedactuarialgainsandlosses 60 -147 -96 224 -86

Net liability recognised in the balance sheet 1,633 1,585 3,367 3,516 1,873

2011 2010 2009 2008 2007

Currentservicecosts 24 28 28 21 23Interestonobligation 253 260 261 220 168Expectedreturnonplanassets -132 -45 -55 -55 -56Actuariallossesrecognisedintheyear -41 83 - - 4

Expenses recognised in income statement 104 326 234 186 139


Fundedandunfundedpensionplans(xEUR1,000) 2011 2010

(Partially) Unfunded Total (Partially) Unfunded Total Funded plans plans Funded plans plans plans plans

Pension obligation and plan assets Openingdefinedobligation 3,513 1,608 5,121 3,364 1,496 4,860Servicecosts 9 15 24 12 16 28Interestcosts 174 79 253 180 80 260Actuarialgain(-)orloss 106 48 154 160 70 230Pensionpayments -202 -79 -281 -203 -54 -257

Presentvalueofpensionobligations 3,388 1,574 4,963 3,513 1,608 5,121 Openingfairvalueofplanassets 3,389 - 3,389 1,397 - 1,397Newassetplan - - - 1,994 - 1,994Expectedreturnonplanassets 132 - 132 45 - 45Actuarialgain(-)orloss -53 - -53 - - -Contributionsbyemployer 18 - 18 17 - 17Benefitspaid -202 - -202 -64 - -64

Closingfairvalueofplanassets 3,390 - 3,390 3,389 - 3,389

Netpresentvalueofunfundedobligations(pensionobligations-/-planassets) -1 1,574 1,573 124 1,608 1,732Unrecognisedactuarialgainsandlosses 84 -24 60 -75 -72 -147

Net liability recognised in the balance sheet 83 1,550 1,633 49 1,536 1,585

Thediscountratehasbeenestablishedaccordingtothestandardsofactuaries.Thediscountratein2011hasbeenadjustedinaccordancewithmarketinterestratesasat31December2011.Theestimatedpensionpaymentsfor2012areEUR262,000.TheGroupmakescontributionstoanumberofdefinedbenefitplansthatprovidepensionbenefitsforemployeesuponretirementinGermany.

InGermanythedefinedbenefitpensionplancomprisingfinalpayarrangementsandarrangementscongruentlymatchedbyaninsurancepolicyarepartlyreinsured.Indeterminingtheannualcoststhenatureoftheplanisrecognisedwhichincludes(conditional)indexationofpensionbenefitsinsofarasthereturnontheseparatedinvestmentssurpassestherequiredactua-rialinterest.Thereservesrequiredfortheseobligationsarerecognised,netofplanassets,inthebalancesheet.

Hans-Joachim Mertens (Quality Manager)TheHermesprojectisscheduledtobecompletedwithfinalpresentationtotheEUcommis-sioninMarch2012.Inthisprojectwewerelookingforasolutionwiththecontactingaccuracyofawaferprobertogetherwiththefullrangeoftestandmeasurementoptionsofasemicon-ductortestsystem.Theeligibilityofthedevelopedconceptwasverifiedbyatestofnearly400demonstratorsamples.

80 RoodMicrotec

Sensorshavebecomeapervasivetechnologyinsociety.Wearejustenteringanewerainwhichintelligentsensornetworkscancreateunimaginablenewdevelopments,asthepossibilitiesarelimitless.Ourpubliclifeandpublictransportarefloodedwithsensorsthatensurethatwearrivesafelyatourdestination,providenecessaryinformationandmakeourliveseasier.


NotallinsurancesqualifyasinsurancepoliciesasdefinedinIAS19‘employeebenefits’.Thefairvalueofinsurancepoliciesthatdonotqualifyasplanassetshavebeenpresentedasfinancialassets.Themostrecentactuarialvaluationsofplanassetsandthepresentvalueofthedefinedbenefitobligationwerecarriedouton31December2011byMercerDeutschlandGmbH,MülheimanderRuhr.Thepresentvalueofthedefinedbenefitobliga-tionandtherelatedcurrentservicecostsandpastservicecostshavebeenmeasuredusingtheprojectedunitcreditmethod.Thechargefortheyearisincludedintheemployeebenefitsexpenseintheincomestatement.Theactualreturnonplanas-setswasEUR185,000(2010:EUR45,000).TheplanassetsdonotincludeanyoftheGroup’sownfinancialinstruments,noranypropertyoccupiedbyorotherassetsusedbytheGroup.TheexpectedratesofreturnonindividualcategoriesofplanassetsaredeterminedbyreferencetorelevantindicespublishedbyNYSEEuronext.Theoverallexpectedrateofreturnwascalculatedbyweighingtheindividualratesinaccordancewiththeanticipatedbalanceintheplan’sinvestmentportfolio.BytransferringthepensionliabilitiestotheGermanpensionfund,pensionfundconcludedaninsurancepolicywithanan-nualrateofreturnof10%.

20. Trade accounts and other payables(xEUR1,000) 2011 2010

Suppliersandtradecredits 936 1,304Non-tradepayablesandaccruedexpenses 910 1,139

Total 1,846 2,443

21. Off-balance sheet commitmentsOperatingleasesaslessee(xEUR1,000) 2011 2010

Lessthanoneyear 114 113Betweenoneandfiveyears 160 161Morethanfiveyears - -

Total 274 274

TheGroupleasesanumberofvehiclesandequipmentundervariousoperatingleaseagreements.Theleasestypicallyrunforaninitialperiodofbetweentwoandfiveyears,withanoptiontorenewtheleaseafterthatdate.Leasepaymentsareincreasedannuallytoreflectmarketrentals.Noneoftheleasesincludescontingentrentals.Theoperatingleaseexpensesin2011wereEUR118,000(2010:EUR136,000).Therearenosubleasecontractsorconditionalleasepayments.

TheGroupdoes,inprinciple,notactasalessor.RentalcommitmentsTheGrouprentsitsofficeinZwolle(theNetherlands)foraperiodoffiveyearswithrenewalrights.TheannualrentisEUR20,600.

Norbert WirthWeneedtoraisethenumberofourengineers.Wewilltrainnewaswellasseniorengineersonnewtestsystems.WewillfocusheavilyontheTeradyneFlexsystems.

82 RoodMicrotec

Capital commitmentsDuringtheyearended31December2011theGroupenteredintoacontracttopurchaseproperty,plantandequipmentforEUR280,000(2010:EUR385,000).

SecurityThefollowingtypesofsecurityhavebeenprovidedtobanksforlong-termandcurrentliabilities:• amortgagetotallingEUR3,323,379onthepropertysituatedatOettingerStrasse6,Nördlingen,Germany;• apledgeonmachineryandequipment;• corporateguaranteestotallingEUR300,000;• apledgeonthesharesinRoodMicrotecStuttgartGmbH.

ContingenciesTheholdingcompanyhasissuedaguaranteeforEUR7,800toathirdparty.TheholdingcompanyandthemajorityoftheDutchoperatingcompaniesformafiscalunityforcorporatetax.Eachoftheoperatingcompaniesisseverallyliablefortaxtobepaidbyallcompaniesthatbelongtothefiscalunity.

22. Related partiesRemunerationofthemanagingdirectorandseniormanagementInadditiontothesalary,theGroupcontributestoapost-employmentdefinedbenefitplanonbehalfofthemanagingdirec-tor.TheCEOalsoparticipatesintheGroup’sshareoptionscheme.

(xEUR1,000)Mr.Ph.M.G.Nijenhuis(CEO) Fixed Remittance Bonus Pension Valuation Total salary salary options

2011 150 - - 14 28 1922010 150 -9 - 14 27 182

CurrentlynoprivatesecurityisputupbytheCEOin2011.TheCEOhasbeenprovidedwithamonthlycarcompensationcom-parabletoleaseandfuelpayments.TheremunerationoftheCEOisdeterminedbythesupervisoryboard.Indeterminingthenumberofoptionsgranted,therealisationofGroupandpersonaltargetsaretakenintoaccount.Thesupervisoryboarddefinesthetargetseverysixmonths.Therearenofurtherguaranteesorobligationsvis-à-vistheCEO.Theinformationabouttheoptionsgrantedtomembersoftheboardofmanagementisprovidedonanindividualbasis.

Remuneration of the supervisory board(xEUR1,000) 2011 2010

Mr.J.H.P.M.Stolker(chairman) 13 13Mr.V.G.Tee 8 8Mr.C.W.M.Koot(formerchairman) - 3Mr.W.Fluit 4 -

Total 25 24

Nooptionshavebeengrantedandnoassetsareavailabletothemembersofthesupervisoryboard.Therearenoloansoutstandingtothemembersofthesupervisoryboard,norhaveanyguaranteesbeengivenonbehalfofmembersofthesupervisoryboard.

Mr.J.H.P.M.Stolkerholdsa1.25%participationinICNPartRoodFundB.V.ICNPartRoodFundB.V.providedaloantothecompany.

Other related party transactionsTheGrouphasnotenteredintoanyjointventures.

23. Subsequent events Therearenosubsequenteventsthatrequiredisclosureinthisannualreport.


Company balance sheet(beforeappropriationofnetresult)

(xEUR1,000) Note 31December 31December 2011 2010

ASSETS Property,plantandequipment 14 4Investmentsinsubsidiaries 24 2,979 2,653Loanstogroupcompanies 25 3,851 3,851Non-current assets 6,844 6,508 Groupcompanies - 95Otherreceivables 186 140Cashandcashequivalents 2 18Current assets 188 253

TOTAL ASSETS 7,032 6,761 EQUITY AND LIABILITIES Issuedcapital 3,935 3,935Sharepremium 17,723 17,695Revaluationreserve 1,885 1,552Retainedearnings -19,987 -19,977Resultfortheyear 588 448Mezzanine 1,994 1,994Equity, attributable to equity holders 26 6,138 5,647 Interest-bearingloansandborrowings - 250Non-current liabilities - 250 Bankoverdrafts 56 -Currentportionoflong-termdebt 250 650Groupcompanies 394 -Tradeaccountandotherpayables 188 208Currentincometaxliabilities 6 6Current liabilities 894 864

TOTAL EQUITY AND LIABILITIES 7,032 6,761

Company Income statement(x1,000EUR) Yearended31December 2011 2010

Netprofitfromgroupcompanies 457 125Otherincome 131 323

NET RESULT 588 448

84 RoodMicrotec

Notes to the company financial statementsGeneral

AsthefinancialdatapertainingtoRoodMicrotecN.V.havebeenincorporatedintotheconsolidatedfinancialstatements,thecompanyhasoptedtoapplytheexemptiongrantedunderSection2:402oftheNetherlandsCivilCodewithrespecttoitsownincomestatement.Onthisbasis,thespecificationonlystatesthenetresultfromparticipatinginterestsandthecom-pany’sownnetresult.Accounting principles and determination of profit or loss

Assetsandliabilitieshavebeenvaluedandresultsdeterminedinaccordancewiththevaluationcriteriacontainedintheaccountingpoliciesasstatedabove.RoodMicrotecN.V.makesuseoftheoptionprovidedinSection2:362(8)oftheNetherlandsCivilCode.Thismeansthattheprinciplesfortherecognitionandmeasurementofassetsandliabilitiesanddeterminationoftheresult(hereinafterreferredtoasprinciplesforrecognitionandmeasurement)ofthecompanyfinancialstatementsofRoodMicrotecN.V.arethesameasthoseappliedfortheconsolidatedfinancialstatements.Participatinginterestsoverwhichthecompanyexercisessignificantcontrolareaccountedforbytheequitymethod.TheconsolidatedfinancialstatementsarepreparedaccordingtothestandardssetbytheInternationalAccountingStandardsBoardandadoptedbytheEuropeanUnion(hereinafterreferredtoasEUIFRS).

Subsidiaries of RoodMicrotec N.V.(Includingregisteredofficeandinterest)

Unlessstatedotherwise,thedirectorindirectinterestofRoodMicrotecN.V.amountsto100%.Insignificantsubsidiarycom-paniesintermsofthird-partyrevenueandbalancesheettotalhavebeendeleted.ThesesubsidiarycompaniesarefullyincorporatedintotheconsolidatedannualaccountsofRoodMicrotecN.V.,unlessstatedotherwise.Subsidiariesareaccountedforbythenetequityvaluemethod.

Company % Office Country

RoodMicrotecInternationalB.V. 100 Zwolle TheNetherlands

RoodMicrotecHoldingGmbH 100 Nördlingen Germany

RoodMicrotecBeteiligungsGmbH 100 Nördlingen Germany

RoodMicrotecNördlingenGmbH+Co.KG 100 Nördlingen Germany

RoodMicrotecDresdenGmbH 100 Dresden Germany

RoodMicrotecStuttgartGmbH 100 Stuttgart Germany

Loans to group companiesLong-termreceivablesincludedherearestatedatnominalvaluelessanyprovisionsconsiderednecessary.


24. Investments in subsidiariesThisitemrelatestowholly-ownedsubsidiaries.Movementsinthisitemintheyearunderreviewwereasfollows:(xEUR1,000) 2011 2010

Balance at 1 January 2,653 534Revaluationdifferences 102 -Profitofgroupcompanies 457 125Conversionofloantosubsidiaryintoequity - -Mezzaninecapital -233 1994


25. Loans to group companiesThisitemrelatestosubordinatedloansissuedtothesubsidiaries.ThetotalsubordinatedamountisEUR2,999,000.AnamountofEUR2,840,009issubordinatedtoallotherliabilities.AnamountofEUR150,000issubordinatedtobankdebts.TheamountofEUR852,000isnotsubordinated.Theinterestraterangesbetween6.50%and7.50%.

Movementsinthisitemwereasfollows:(xEUR1,000) 2011 2010

Balance at 1 January 3,851 3,851Newloan - -


26. Equity, attributable to shareholders

Themovementsinequitywereasfollows:(xEUR1,000) Issued share share Revaluation Retained Mezzanine Total Total capital premium reserve Earnings capital 2011 2010

Balance at 1 January 3,935 17,695 1,552 -19,529 1,994 5,647 3,115Employeeoptionsexercised - - - - - - 63Valuationoptionsgranted - 28 - - - 28 27Revaluationbuildings 358 -250 - 108 -Depreciationbuildings - - -25 25 - - -Issuedmezzaninecapital - - - - - - 1,994Mezzaninecompensation - - - - -233 -233 -Mezzaninecomp.distribution - - - -233 233 - -

3,935 17,723 1,885 -19,987 1,994 5,550 5,199Appropriationofresult - - - 588 - 588 448

Balance at 31 December 3,935 17,723 1,885 -19,399 1,994 6,138 5,647

86 RoodMicrotec

Milkrobotsaremachinesthatautomaticallymilkcows.Beforeitstarts,itchecksthecow’sidentity,howoftenithasbeenmilked,howmuchconcentratesitcaneatduringmilkingandanyspecialissueswiththisparticularcow.Thecowisidentifiedbyachipinthecow’scollar,whichiscrosscheckedagainstacomputerdatabase.Ifthecowmaynotbemilked,thegateopensandthecowmustcomebacklater.Ifitismilked,thecomputerknowswheretheteatsarelocated;itfirstcleanstheuddersandthenattachesthemilkingequipmenttothecow’sfourteats.Betweencows,themachineistho-roughlycleanedanddisinfected.Thefarmercancheckbythecow’schipandnumberhowthecowisdoingandhowmuchmilkitisproducing.


AsaresultoftherevaluationoflandandbuildingsofRoodMicrotecNördlingenGmbH+Co.KG,legalreservehasbeenrecognized.Thislegalreserve(revaluationreserve)cannotbeusedfordividendpayments.

Revaluationreserve

(xEUR1,000) Total Total 2011 2010

Balance as at 1 January 1,552 1,647 Revaluationbuildings 358 -95Depreciationbuildings -25 -

Balance as at 31 December 1,885 1,552

Guarantees TheCompanyhasprovidedparentcompanyguaranteesinrespectofitssubsidiariesofEUR300,000.

Amsterdam,23February2012

Board of management Supervisory boardPh.M.G.Nijenhuis,CEO J.H.P.M.Stolker,Chairman V.G.Tee W.Fluit

Corporate management teamR.Pusch,Vice-presidentandCSON.Wirth,CTOR.A.Cuny,CFO

Wilhelm Wagner (Engineering/Consultancy/KAPM Key Account Project Management)

88 RoodMicrotec

Other informationINDEPENDENT AUDITOR’S REPORTToGeneralMeetingofShareholdersofRoodMicrotecN.V.

REPORT ON THE ANNUAL ACCOUNTS

WehaveauditedtheAnnualAccounts2011ofRoodMicrotecN.V.,Zwolle.TheAnnualAccountsconsistoftheconsolidatedannualaccountsandthecompanyannualaccounts.Theconsolidatedannualaccountscomprisetheconsolidatedbalancesheetasat31December2011,theconsolidatedincomestatement,consolidatedstatementofchangesinequityandconsoli-datedcashflowstatementfortheyearthenended,andnotes,comprisingasummaryofthesignificantaccountingpoliciesandotherexplanatoryinformation.Thecompanyannualaccountscomprisethecompanybalancesheetasat31December2011,thecompanyincomestatementfortheyearthenendedandthenotes,comprisingasummaryoftheaccountingpoli-ciesandotherexplanatoryinformation.

Management’s responsibilityManagementisresponsibleforthepreparationandfairpresentationoftheannualaccountsinaccordancewithInternatio-nalFinancialReportingStandardsasadoptedbytheEuropeanUnionandwithPart9ofBook2oftheDutchCivilCode,andforthepreparationoftheReportoftheboardofmanagementinaccordancewithPart9ofBook2oftheDutchCivilCode.Furthermoremanagementisresponsibleforsuchinternalcontrolasitdeterminesisnecessarytoenablethepreparationoftheannualaccountsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.

Auditor’s responsibilityOurresponsibilityistoexpressanopinionontheannualaccountsbasedonouraudit.Weconductedourauditinaccor-dancewithDutchlaw,includingtheDutchStandardsonAuditing.Thisrequiresthatwecomplywithethicalrequirementsandplanandperformouraudittoobtainreasonableassurancewhethertheannualaccountsarefreefrommaterialmis-statement.Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresintheannualac-counts.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmis-statementoftheannualaccounts,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevanttothecompany’spreparationandfairpresentationoftheannualaccountsinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessofthecompany’sinternalcontrol.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebymanagement,aswellasevaluatingtheoverallpresentationoftheannualaccounts.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

Opinion with respect to the consolidated annual accountsInouropinion,theconsolidatedannualaccountsgiveatrueandfairviewofthefinancialpositionofRoodMicrotecN.V.asat31December2011andofitsresultanditscashflowfortheyearthenendedinaccordancewithInternationalFinancialReportingStandardsasadoptedbytheEuropeanUnionandwithPart9ofBook2oftheDutchCivilCode.

Opinion with respect to the company annual accountsInouropinion,thecompanyannualaccountsgiveatrueandfairviewofthefinancialpositionofRoodMicrotecN.V.asat31December2011andofitsresultfortheyearthenendedinaccordancewithPart9ofBook2oftheDutchCivilCode.


REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTSPursuanttothelegalrequirementunderSection2:393sub5ateandfoftheDutchCivilCode,wehavenodeficienciestore-portasaresultofourexaminationwhethertheReportoftheboardofmanagement,totheextentwecanassess,hasbeenpreparedinaccordancewithPart9ofBook2ofthisCode,andwhethertheinformationasrequiredunderSection2:392sub1atb-hhasbeenannexed.FurtherwereportthattheReportoftheboardofmanagement,totheextentwecanassess,isconsistentwiththeannualaccountsasrequiredbySection2:391sub4oftheDutchCivilCode.

Amsterdam,23February2012

MAZARS PAARDEKOOPER HOFFMAN ACCOUNTANTS N.V.

w.s.drs.J.J.W.GalasRA

Post balance sheet date eventsNosignificanteventshavetakenplaceafterbalancesheetdate.

Profit appropriationArticle27oftheArticlesofAssociationincludesthefollowingprovisionsforprofitappropriation:1. thecompanymaypaydividendsandmakeotherdistributionsonlytotheextentthatitsequityexceedstheamountof thepaid-upandcalled-upportionofthesharecapitalplusthereserveswhichmustbemaintainedbylawandunder thesearticles;2. subjecttothepriorapprovalofthesupervisoryboard,theboardofmanagementisauthorisedtoaddanyprofitin wholeorinparttothereserves;3. anyprofitremainingafterreservationreferredtointheprecedingparagraphwillbeatthedisposaloftheannual generalmeetingofshareholders;4. totheextentthatthegeneralmeetingofshareholdersdoesnotresolvetodistributetheprofitforanyfinancialyear, suchprofitwillbeaddedtothereserves.

Proposed profit appropriationInaccordancewitharticle27oftheArticlesofAssociation,weproposetoaddtheentireresulttothereserves.

90 RoodMicrotec

Group Structure

RoodMicrotecN.V.Zwolle

TheNetherlands

RoodMicrotecDresdenGmbH

DresdenGermany

RoodMicrotecBeteiligungsGmbH

NördlingenGermany

RoodMicrotecHoldingGmbH

NördlingenGermany

RoodMicrotecStuttgartGmbH

StuttgartGermany

RoodMicrotecNördlingen

GmbH+Co.KGNördlingen

Germany

RoodMicrotecInternationalB.V.

ZwolleTheNetherlands

• Contracting• TestEngineering

• Test&RelatedServices• TestEngineering

• TestEngineering• Qualification• Optoelectronics• Failure&TechnologyAnalysis• Consultancy

• Research&Development(R&D)• Test&RelatedServices• TestEngineering• Qualification&Reliability

100%

100%

100%

100%

100%

100%


CFO

Remy A. Cuny(1976)Nationality:DutchChiefFinancialOfficerMemberofcorporatemanagementteamsince1November2010Previouspositions:managementpositionswithALSIN.VandMicronitMicrofluidicsB.V.

Board of Management

Members of the corporate management team

Corporate management team

CTO

Norbert Wirth(1956)Nationality:GermanChiefTechnicalOfficerCorporatemanagementteammembersinceFebruary2011Previouspositions:SeniormanagementpositionswithSiemens,InfineonandQimondaSeniorPrincipalTestEngineering

Vice-presidentandCSO

Reinhard Pusch(1953)Nationality:GermanVice-PresidentandChiefSalesOfficerMemberofcorporatemanagementteamsinceJuly2008Previouspositions:seniormanagementpositionswithAlcatelandGeneralManagerofmicrotecGmbH

CEO

Philip M.G. Nijenhuis(1945)Nationality:DutchChiefExecutiveOfficersinceSeptember2004Previouspositions:seniormanagementandboardpositionswithBESI,DTS,Schlumberger,ATKearney,ITT/Alcatel,ScaniaandWavin.

92 RoodMicrotec

Supervisory boardChairman

Jan H.P.M. Stolker(1955)Nationality:DutchChairmanofthesupervisoryboardsinceApril2010Appointedasamemberofthesupervisoryboardon26March2009Termofofficeendsin2013Previouspositions:seniormanagementandboardpositionswithABNAmroBank,NeSBICInvestmentFundsIIandvariousprivatecompaniesCurrentposition:manager/adviserofvariousprivatecompanies,programmedirectoratErasmusUniversity

Victor G. Tee(1943)(1943)Nationality:EnglishMemberofthesupervisoryboardAppointedon26March2009Termofofficeendsin2013Previouspositions:variousseniormanagementpositionswithPhilips,SiliconixandpresidentandCEOofMillenniumMicrotechGroup

Wil Fluit(1947)Nationality:DutchMemberofthesupervisoryboardAppointedon4July2011Termofofficeendsin2015Previouspositions:InfineonMalaysia,SiemensMalaysia&Germany,Euratec,EurasemandPhilipsCurrentposition:independentconsultant,chairman+co-founder–BusinessClusterSemi-conductorsNetherlands


Addresses and personal detailsRoodMicrotec N.V. Board of management‘Rembrandt’,DoktervanDeenweg58 Ph.M.G.Nijenhuis,CEONL-8025BCZwolle Members of corporate management teamCorrespondenceaddress: R.Pusch,VPandCSOP.O.Box1042 N.Wirth,CTONL-8001BAZwolle R.Cuny,CFOTelephone: +31(0)384215216 Fax: +31(0)384216410 Email: [email protected] Website: www.roodmicrotec.com

Business units

RoodMicrotec Nördlingen GmbH + Co. KG ManagementOettingerStrasse6 RoodMicrotecBeteiligungsGmbHD-86720NördlingenTelephone: +49(0)9081804-0Fax: +49(0)9081804-208

RoodMicrotec Holding GmbH ManagementOettingerStrasse6 Ph.M.G.NijenhuisD-86720Nördlingen N.Wirth R.PuschRoodMicrotec Beteiligungs GmbH Management OettingerStrasse6 Ph.M.G.NijenhuisD-86720Nördlingen N.Wirth

RoodMicrotec Dresden GmbH ManagementMaria–Reiche-Strasse7 Ph.M.G.NijenhuisD-01109Dresden N.WirthTelephone: +49(0)351205666-0

RoodMicrotec International B.V. Management‘Rembrandt’,DoktervanDeenweg58 Ph.M.G.Nijenhuis,CEONL-8025BCZwolle

RoodMicrotec Stuttgart GmbH ManagementMotorstraße49 R.PuschD-70499StuttgartTelephone: +49(0)71186709-0Fax: +49(0)71186709-50

94 RoodMicrotec

Sales representatives

Jean Pierre StempelJPSConsultingLeColombier02160BeaurieuxFranceTelephone: +33(0)953575375Mobile: +33(0)689830761E-Mail: [email protected]

Mike JarvisRepresentativeUKTelephone: +447785341322E-Mail: [email protected]

Strategic alliance

Millennium Microtech (Thailand Operation)17/2Moo8SuwintawongRoadTambonSaladangBangnumpriewChachoengsao24000ThailandPhone: +66(38)845-530

Millennium Microtech (China Operation)351GouShouJingRoadZhangJiangHi-TechParkPudongNewAreaShanghai201203ChinaPhone: +86(21)5080-0210

TransPart S.R.L.CorsoSempione75I-20149MilanoPhone: +3902318079231

X-FAB Semiconductor Foundries AGX-ChainpartnernetworkHaarbergstrasse67D-99097ErfurtPhone: +49(0)3614276163

OSRAM Opto Semiconductors GmbHLEDLightforYourparnternetworkLeibnitzstrasse4D-93055RegensburgPhone: +49(0)9418501505

Dmitriy DvornikovSovtestATEVolodarskogo,49Kursk305000RussiaTelephone: +7471254-54-17Fax: +7471256-35-50E-Mail: [email protected]: www.sovtest.ru

SuperTec 1HamasgerSt.IndZoneRaanana43653IsraelTelephone: +97297480130Fax: +97297480129Email: [email protected]: www.supertec.co.il

96 RoodMicrotec

ColophonTextual advice and editingKortInvestorRelationsTelephone:+31(0)651424558Website:www.kort-ir.com

Images, design and layoutSjeWorks.nl-SatinahJellemaTelephone:+31(0)651885203Website:www.sjeworks.nl

Design and layoutSatinahJellemaandVilmarVogelaarTelephone:+31(0)651885203

RoodMicrotec N.V.‘Rembrandt’, Dokter van Deenweg 58NL-8025 BC Zwolle

Correspondence address:P.O. Box 1042NL-8001 BA Zwolle

Telephone: +31 (0)38 4215216Fax: +31 (0)38 4216410

E-mail: [email protected]: www.roodmicrotec.com

Chamber of Commerce number 33251008 Annual Report • RoodMicrotec N.V.2011

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